Cranberry Stressline

Dates Oct 1 - 10, 1999

  • Ocean Spray increases advertising, marketing budgets with new focus

  • Harvest '99: Crisis in Cranberry Country from the Middleboro Gazette

  • Generic promotion: A free ad in the N.Y. Times

  • Growers dilemma: too many berries, not enough markets, from the Middleboro Gazette

  • Opinion: Speculation about the future role of Medford at Ocean Spray

  • Ocean Spray launches new marketing campaign

  • Media: WBZ Television report features Decas, LaFleur

  • Media: Bittersweet harvest from the New Bedford Standard Times

  • Ocean Spray to use Internet outsourcing to meet travel  and entertainment needs

 

 

Ocean Spray increases advertising, marketing budgets with new focus

10/7/99 According to a report published in today's Boston Globe, Ocean Spray is increasing its advertising budget from $34 to $46 million and its overall marketing budget, which includes both advertising and promotions, from $75 million to $100 million. Ocean Spray continues with Arnold Advertising. The theme of the new ads will be "you know its good". They will target the consumers who frequent the juice aisle on a regular basis, with advertisements in the print media and on cable television. There will be an emphasis on the health benefits of cranberries as well as a shift in from describing Ocean Spray as a "fruit company" to focusing on the cooperative's cranberry growing heritage. Boston Globe Article


Generic Promotion:

A free ad in the N.Y. Times

10/6/99 Sometimes there is a second chance in advertising. Ask Coca-Cola. Cranberry industry analysts have suggested that the momentum generated by the original studies about urinary tract infections and cranberries wasn't adequately maintained. Now the New York Times has published an article in their Living Section entitled "An Old wives' tale meets new science." While it doesn't introduce any new data about the health benefits of cranberry juice, the timing of the story couldn't be better.

Read the article HERE.


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Speculation about future role of Mefford at Ocean Spray
by Hal Brown

10/3/99 Dean Mefford begins work at Ocean Spray this week. He'll oversee the day-to-day operations of the company as C.O.O., the number two man in the chain of command. Designated interim Chief Operating Officer, he is ostensibly a "lame duck" like his superior Tom Bullock, who is due to retire sometime in the year 2000. Both men are in their fifties and could easily have another executive career in their futures.

The Boston Globe is reporting the story under the headline "Mefford's appointment to Ocean Spray post sets off speculation".   Possibilities run from Mefford being an acquisition advance man for his former employer; to his being groomed as the next CEO.

John Decas, President of Decas Cranberries in Carver and Wareham, Massachusetts believes that the Ocean Spray board of directors will try to avoid what they perceive as an admission of failure, i.e., selling the company to a larger entity. He is quoted as saying ''My gut feeling is that [Ocean Spray's] directors will try to pull a rabbit out of the hat.''

The word from Ocean Spray's point man for public relations, Chris Phillips is  ''All speculation about Dean Mefford and Ocean Spray is beyond any semblance of reality."

Read story here: Boston Globe - 10/3/99

 

Harvest '99: Crisis in Cranberry Country?
by Jane Lopes, Editor
The Middleboro Gazette
Republished with Permission
Picture

10/7/99 With this year's cranberry harvest in full swing, the industry is expected to exceed last year's bumpers crops by 5%, or some 294,000 barrels, according to Cranberries, a trade magazine published by grower Carolyn Gilmore.

That's not good news to Southeastern Massachusetts growers, who have seen prices drop for $85 a barrel a few years ago to $35 last year. With a two-year inventory of 2.8 million barrels, payments to growers are not expected to increase this year.

:We're drowning is a sea of cranberries, " said Ms. Gilmore, who works 30 acres of bogs in South Carver and Wareham with her husband. CONTINUED | Easy to print version

Growers' dilemma: too many berries, not enough markets
by Paula Charbonneau, Staff Writer
The Middleboro Gazette
Republished with Permission

10/7/99 Regional cranberry growers are being forced to reevaluate how they approach world markets and how they can streamline government environmental regulations in the wake of declining profits.

Independent growers and growers who how shares in the Ocean Spray cooperative face the worsening dilemma of too many berries and not enough markets, and some industry insiders say "we have no one to blame but ourselves." CONTINUED | Easy to print version


Ocean Spray Launches
New Marketing Campaign

10/6/99 Integrated Communications Efforts to Support
Next Generation of Healthful Products. Read press release
HERE.


Media

decas.jpg (24281 bytes) lafleur.jpg (24175 bytes)
click photos to enlarge

10/5/99 Bostons WB Channel 56 aired a story entitled "Blue Harvest" on the drop in price per barrel which was attributed to the cranberry surplus. Jeff LaFleur, Director of the Cape Cod Cranberry Growers' Association and John Decas, President of Decas Cranberries were interviewed.

10/4/99 Boston WBZ Televison, aired a brief spot on the noon news about the cranberry surplus. Ocean Spray grower and member of the Ocean Spray Board of Directors, Jeff Kapell, was shown harvesting. Picture

Bittersweet Harvest...

10/3/99 The  front page article in the New Bedford Standard Times, "Bittersweet Harvest", is  accompanied by the striking  cranberry pictures readers of southeastern Massachusetts newspapers  are used to seeing every fall. This harvest season the articles being published all reflect the dire state of the industry, rather than the beauty of the harvest.

These articles give growers an unusual opportunity to read the latest take on the situation at Ocean Spray. It appears that "business as usual",  with essentially more of the same only bigger and better, is still an option for the cooperative.

With no mention of mismanagement at Ocean Spray, the article attributes the following to Phillips: "Ocean Spray has been a victim of its own success. Its growth and profits inspired its competitors, who wanted to 'ride the wave'  with the local firm - but then played a critical role in lowering the market prices."

Regarding "rumors" of an acquisition of Ocean Spray, Phillips is quoted that these have "raced beyond all semblance of reality." The article goes on to say that Phillips "conceded" a sale or merger is still "an option" while expressing confidence that the industry will turn around. "The is a solvable situation. It won't last forever; but that doesn't make it any easier now for the small grower. They put their hearts and souls into this," Phillips is quoted.

Read the article here: Standard Times, 10/3/99


Ocean Spray to use Internet outsourcing to meet travel and entertainment needs

10/7/99 A sound and reliable way to utilize the power of modern technology without the risks inherent in adobpting free standing softwear is to utilize the power of the Internet. Ocean Spray has selected Concur Technologies ( www.concureworkplace.com ) for travel, entertainment expense management and travel booking services. "With Concur eWorkplace.com we can move to a new level of automation, using the power and flexibility of the Web, with virtually no risk" said William H. McBain, assistant treasurer, Ocean Spray. "Our employees are eager to use this solution, and we anticipate that we will be up and running quickly to begin to realize the benefits Concur eWorkplace.com offers. Ocean Spray will take advantage of Concur's simple, predictable pricing. "With less up-front expenditure required for Concur eWorkplace.com, the risk factor is negligible." Read Concur Press release here

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