Cranberry Stressline

Dates: Dec. 8 - 21, 1999

  • New Ceo - Insights from Korn/Ferry

  • Stanadard and Poors may now cuts Ocean Spray ratings

  • Article in Boston Globe on announcement of new CEO

  • Post-Snapple, Quaker Oats set for growth

  • Coke article

  • General Mills news

  • New cranberry bagel

  • Law suit against Pepsi

  • Could new CEO at Coke signal change in acquistion picture?

  • Tropicana now No. 4 grocery brand

  • Programs to help Mass. cranberry growers announced

  • Transcript of CBS News report

New CEO:

Insights from Korn/Ferry

12/20/99 With the announcement of Ocean Spray's new CEO coming soon, it might be interesting to review some of the information from the web site of Korn/Ferry International, the executive search firm hired by Ocean Spray.

Overbearing Corporate Bosses are Doomed, Global Executive Survey Concludes: Study Predicts The Extinction of the "Controllasaurus" Within a Decade "Feminine" Traits Crucial for Tomorrow’s Corporate Leader Read article HERE

Marketing is Fastest Route to the Executive Suite, Study Finds: International Assignments, Once "Kiss of Death," Gain Favor Global Economy Pushes Finance -- Once Number Two -- to Distant Third Read article HERE

On the emerging role of the BOD in corporations: "While the CEO still retains enormous influence, the new corporate governance pattern establishes shared power as the norm in the boardrooms of most major U.S. companies," says Richard M. Ferry, Chairman of the Board. Read article HERE

More Korn/Ferry articles HERE


Announcement may be imminent

12/19/99 According to an article in the South Weekly section of the Boston Globe, the new Ocean Spray CEO could be named as early as this week.  Read article HERE.


Quaker News

Post-Snapple Quaker Oats set for growth

11/15/99 Quaker Oats has rebounded from the worst setback in its history. Poor marketing of Snapple cost the company $1.4 billion and CEO William Smithburg his job. Now under a new CEO, Robert Morrison, with Gatorade cornering the sports drink market at 80%, the company has turned around. An article in the current issue of Forbes, "Breaking a Sweat" by Bruse Upbin describes the comeback of this century old American institution. Forbes article here. (If you have trouble linking to this article please email editor@stressline.com .)

quaker01.jpg (27783 bytes) quaker03.jpg (61565 bytes)
1899 Quaker ads, click photos to enlarge


Editor's note: While Ocean Spray and Tropicana may never come together under Pepsi, cranberries and oranges are together in a bagel.

Manhattan Bagel Introduces New Bagel Flavors for the Holiday Season

EATONTOWN, N.J., Dec. 14 /PRNewswire/ -- New World Coffee-Manhattan Bagel Inc. (Nasdaq: NWCI - news) announced today that its Manhattan Bagel subsidiary has introduced two new bagel flavors, Gingerbread and Orange Cranberry, for the holiday season.

``Manhattan Bagel's newest bagels are designed to enhance this special season,'' said Mike Ryan, vice president of franchise services. ``Customers and franchisees alike are pleased with the new bagels, which, like our entire line, are boiled and freshly baked every day at the store.''

The Gingerbread and Orange Cranberry introduction is being supported at store level with a variety of point-of-purchase materials. Including these newest items, the chain's store now offer 22 varieties of bagels.

New World Coffee-Manhattan Bagel Inc. currently franchises, licenses or owns stores under its four brands in 27 states and Washington, D.C. The Company is vertically integrated in bagel dough and cream cheese manufacturing, and coffee roasting, with plants in New Jersey, California and Connecticut.

SOURCE: New World Coffee-Manhattan Bagel Inc.


Opinion

''So many people do have Coca-Cola stock and in my past job and present job I continue to meet people all the time who are stockholders ... it is awe-inspiring. My neighbors, friends, people in the street.''  Doulas Daft on remaining humble in his new job as CEO of Coke, in A.P. Story 12/10/99

Burning bridges

12/8/99 According to an article in the Patriot Ledger today, Ocean Spray has decided to go to  federal court in its lawsuit against Pepsi. It is pursuing damages for what it alleges is a breach of contract by Pepsi when it bought Tropicana. The decision to fight Pepsi in court comes on the heels of the Board of Director's decision not to sell Ocean Spray. Pepsi was considered one of the primary suitors. Read Patriot Ledger article HERE

Related Stressline article HERE.

Previous court ruling HERE.

Bio of attorney James Burling of Hale and Dorr, who represents Ocean Spray HERE.


Could there be a Coke in Ocean Spray's future?

12/8/99 Until now, Coca-Cola has all but been ruled out as a possible suitor to acquire the Ocean Spray label and introduce cranberries to a worldwide market. Coke has had more than its share of troubles in the past two years,  with profits suffering due to the Asian economic crisis, a federal racial discrimination suit , the well publicized contamination scare and criticism over Coke's slow response, and an antitrust investigation in Europe that blocked the attempt to buy Orangina. After only two and a half years on the job, Coke's CEO M. Douglas Ivestor is stepping down and being replaced with Douglas Daft.

Daft, an Australian with an international perspective, ran Coke's Middle East, Far East and Japanese divisions. Last quarter, 73% of Coke's profits came from global sales. Randy Donaldson, Coke's vice president for corporate communications, is quoted in the Associated Press as saying that "Daft can also be 'very tough'  but understands different cultures. He's lived all over the world and understands the way different people live.'' No doubt, he also understands how to introduce cranberries to countries where 99% of the population has never tasted the "sweet tart berry."

While Coke hasn't pushed Minute Maid into international markets, and never followed through on their plans to introduce a line of shelf-stable Minute Maid products, Daft could view the acquisition of Ocean Spray as a way to compete from a position of strength both on the domestic and the overseas juice aisles, as well as in the single serve category. It would also enable Coke to market "good for you" beverages to the growing segment of the worldwide population who are switching from nonnutritive carbonated beverages to juices. If this trend continues, as it is likely to, and Pepsi has designs on making Tropicana the international fruit juice company, Coke could well loose out on this lucrative market.

Ocean Spray has been a good fit with the Pepsi line ever since they acquired Tropicana. Now with a new leader at Coke who may be able to think beyond just competing for the caffeinated bubbly consumer, Coca-Cola may be a potential suitor of Ocean Spray. Easy to print version

S&P Press release

Standard & Poors may now cut Ocean Spray Cranberries ratings

NEW YORK, Dec 20 - Standard & Poor's single-'A' long-term corporate credit and senior debt ratings, its triple-'B'-plus preferred stock rating, and its 'A-1' short-term corporate credit and commercial paper ratings for Ocean Spray Cranberries Inc. remain on CreditWatch, where they were placed Sept. 30, 1999; however, the implications are revised to negative from developing.

The rating action follows the decision by Ocean Spray's Board of Directors to not pursue the sale of all or part of the company after an internal review facilitated by outside consultants. Ocean Spray will be challenged to sustain recent market share improvements over the long term given its stepped-up level of promotional activities.

Additionally, Ocean Spray is likely to name a new chief executive officer over the near term, which leads to some uncertainty regarding the long-term strategic direction and financial policies of the cooperative.

Standard & Poor's will continue to monitor events and re-visit with management to discuss operating performance and financial strategies going forward.

Ocean Spray is a marketing cooperative owned by cranberry and citrus growers in the U.S. and Canada.

The company supplies blended juices and fresh cranberries and grapefruit. Ocean Spray handles roughly 70% of the North American cranberry crop and has a major position in the Florida grapefruit industry.

Easy to print version


Coke fined in Italy

12/16/99 In 1998 PepsiCo filed complaints against Coca-Cola because, with 80% share soft drink sales in Italy, they alleged it was using its clout in the marketplace to illegally exclude Pepsi from Italian stores. Today, according to an A.P. article, Italy's antitrust authority imposed a $16.1 million fine against Coca-Cola Co. It is alleged that Coke offered discounts as a quid pro quo for reducing display space for competitors' products.  Coke announced it was planning to appeal. Read 12/18/99   N.Y. Times article here


General Mills Reports Record Earnings Per Share Up 11 Percent in Fiscal 2000 Second Quarter

Sales Grew 8 Percent, Reflecting Broad Unit Volume Gains

MINNEAPOLIS, Dec. 15 /PRNewswire/ -- General Mills (NYSE: GIS - news) today reported diluted earnings per share of 62 cents per share for the second quarter of fiscal 2000, up 11 percent from 56 cents per share before unusual items earned in the same period last year. After-tax earnings grew 10 percent to $193.7 million. Sales for the 13-week period ended Nov. 28, 1999, totaled $1.82 billion, up 8 percent. CONTINUED

General Mills Agrees to Purchase Small Planet Foods, a Leading Producer Of Branded Organic Foods

MINNEAPOLIS, Dec. 15 /PRNewswire/ -- General Mills (NYSE: GIS - news) today announced it has signed an agreement in principle to purchase Small Planet Foods, a leading producer of organic food products. CONTINUED


Pepsi News:

Tropicana Pure Premium Now the #4 Grocery Brand

BRADENTON, Fla., Dec. 14 /PRNewswire/ -- Tropicana Pure Premium has become the nation's fourth-largest grocery brand. According to the latest 52-week supermarket sales data from Information Resources, Inc. (IRI), Tropicana Pure Premium juice passed Kraft cheese to assume the fourth position among the top brands as defined by IRI's InfoScan®

CONTINUED


Read related article in the Cape Cod Times HERE

Press Release
Massachusetts Department of Food and Agriculture

Programs to Bolster Massachusetts’ Cranberry Industry Announced

12/10/99 - PLYMOUTH, Mass. – Two new programs designed to help cranberry growers weather turbulent economic times were announced today at a Cranberry Symposium at the Sheraton Inn, Plymouth. Due to a surplus, the value of the 1998 Massachusetts cranberry crop was $70 million, about half that of the previous year at nearly $140 million.

The programs will provide growers with short-term conservation plans and workshops on efficiency improvement and financial planning to ensure the future viability of the Commonwealth’s important cranberry industry. CONTINUED | Easy to print version


General Mills Board of Directors Declares Quarterly Dividend

MINNEAPOLIS, Dec. 13 /PRNewswire/ -- The General Mills (NYSE: GIS - news) Board of Directors today declared a quarterly dividend at the prevailing rate of $0.275 per share. The dividend is payable Feb. 1, 2000, to shareholders of record Jan. 10, 2000. This quarterly dividend rate was established with the Feb. 1, 1999, payment. General Mills and its predecessor company now have paid uninterrupted dividends without reduction for 101 years.


Media

CBS News report

12/10/99 Many readers missed the Nov. 27th CBS News report on the cranberry crisis as it was preempted for football in many parts of the country. To read a transcript, Click Here.

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