(Pet) Food
for thought
8/21/99 Proctor & Gamble has been mentioned,
along with beverage corporations like Coke and Pepsi, as the kind of large multi-national
company that would benefit Ocean Spray grower/ owners should they acquire the brand label
and marketing portion of the cooperative. Acquisitions are playing a large part in true
multi-national's strategic planning for the next decade of international food and beverage
marketing. Corporations valued in the $100 billion plus range and doing well, have the
cash at hand to purchase comparatively small companies and use their savvy and clout to
make them winners. Witness what Triarc has done for Snapple. Business in the juice aisle
isn't soft for Triarc, a newcomer to the beverage industry.
Now Proctor & Gamble is about to enter the pet food market by
purchasing privately owned Iams Co. for $2.3 billion in
cash and debt. Americans might be surprised to learn that two-thirds of the market for pet
food is international. At present, international sales for Iams are only 30%, so
there is huge world-wide growth potential which P&G will doubtlessly take advantage
of.
Triarc, with Snapple up 10%, posts impressive 2nd quarter
gain
8/20/99 Excerpt from yesterday's press release: "Triarc's
premium beverage operations, comprised of Snapple, MisticŪ and Stewart'sŪ, reported
adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of
$23.5 million for the 1999 second quarter on revenues of $196.4 million, compared to
adjusted EBITDA of $19.6 million on revenues of $177.7 million for the comparable period
in 1998....The significant improvement in premium beverage adjusted EBITDA, compared to
the 1998 second quarter, was fueled by a 10% volume increase for Snapple. Snapple's core
diet and fruit drinks and Elements(TM), a new product platform of herbally enhanced drinks
introduced in April 1999, were the primary factors contributing to this growth. During the
second quarter, approximately 1.4 million cases of Elements were sold, indicating positive
initial reaction from both distributors and consumers. Read
entire press release here
Taking Charge of our Future
By Dave McCarthy
Massachusetts cranberry grower,
Member, Cranberry Institute Board of Directors
8/19/99 - I believe that the time has come for all cranberry growers to take an active
part in the future of our industry. The news that the industry will have a carryover
of approximately 3 million barrels is very unsettling and could bring the whole industry
to its knees.
Leaving our future in the hands of our respective handlers is not the answer.
Inbred jealousies, lack of trust between handlers, etc. do not make a smooth path
leading to the road to recovery. There is, in my estimation, only one way that we
can recover in a reasonable amount of time with a little skin left on us. That way
is to begin to promote the cranberry industry by bringing to this country and the
world the word CRANBERRY. Right at the moment, all handlers and bottlers are
out there chasing the same dog. This, as we all know, is only driving the price
lower.
How do we go about doing this?
I would like to suggest that all cranberry growers (U.S. and Canada) agree to put up
twenty five cents per barrel to be held out by their handlers and put into a fund to be
used by the Cranberry Marketing Committee for the generic promotion of CRANBERRIES.
This promotion of cranberries would consist of telling the good story that we have to tell
but without a brand name in sight. I can only state that without we, the
growers, taking a lead in this direction, it will never happen.
Twenty five cents a barrel will be peanuts compared to the distinct possibility of a
set-aside for a number of years to come. We have to make a move and make it fast.
I would to further suggest that a so-called "Cranberry Summit Meeting" be held
in the very near future. This meeting could be hosted by the Cranberry Institute
(with board approval) and would consist of the top two people from each handler in
the industry. Subjects could be: How the industry used to be, how it is now and the
principles used in returning it to a viable industry. It seems that if the
Arab Countries can sit at a table and be somewhat civil to each other, we should be able
to do the same.
There are no simple answers to a very complicated situation, but we have to start
somewhere and these are my views on where we could begin a recovery effort.
I would like to here from fellow cranberry growers as to their views on this subject
either on the Stressline
Forum (preferably), or E-Mail me at Mysticran@
webtv.net
Thanks and have a good harvest .
NASS forecast for 1999 cranberry crop up 6%
Price per barrel hasn't been this low since 1980
Released August 17, 1999, by the National Agricultural Statistics
Service (NASS), Agricultural Statistics Board, U.S. Department of Agriculture. For
information on "Cranberries" call Steven Gunn at (202) 720-3110, office hours
7:00 a.m. to 4:30 p.m. ET.
1999 Cranberry Production Up 6 Percent
The forecast for the 1999 cranberry crop is a record high 5.81
million barrels, up 6 percent from both 1998 and 1997. Massachusetts, New Jersey, Oregon,
and Wisconsin are forecasting increases from a year ago while Washington is expecting a
decrease.
Production in Wisconsin is forecast at a record high 2.6 million
barrels, 2 percent above 1998 and 13 percent above 1997. Growers reported very little
winter damage. Berry set was good to excellent and a wet July provided a good water
supply. Some growers expressed concern about excessive moisture causing fruit rot.
The Massachusetts crop is forecast at 2.1 million barrels, up 12
percent from 1998 but unchanged from 1997. A mild winter caused little winter damage plus
very few insect and disease problems were reported. Growers indicated that the crop had
good pollination and set with medium berry size.
New Jersey expects a crop of 580,000 barrels, up 11 percent from
1998 but down slightly from 1997. Growers reported good pollination, bee activity, and
fruit set. Fruit size was reported as average.
In Oregon, the crop is forecast at 370,000 barrels, 4 percent above
last year's crop and 6 percent above 1997. This year's crop had a slow start due to a cool
spring. Pollination was good and fruit set was fair. No abnormal problems with pests were
reported.
The Washington crop is forecast at 160,000 barrels, 5 percent below
last year and 3 percent below 1997. Washington had a mild winter with little frost damage.
A cool spring hampered pollination and set. Insect and weed problems also contributed to
the decreased production.
1998 Production and Value Down
Production of cranberries in the United States in 1998 totaled 5.46
million barrels, down 1 percent from 1997. The area harvested, at 36,600 acres, increased
3 percent from the previous year and set a new record. The average yield of 149.1 barrels
per acre was 4.9 barrels below 1997. The average price per barrel decreased $22.10 per
barrel from 1997 to $41.60. Value of production decreased to $227 million, 35 percent
below the previous season's record high.
Read charts and full statistics on NASS Web
site.