Cranberry Stressline Archives
to Aug. 31, 2000
Northland Cranberries, Inc. (Nasdaq: CBRYA), announced several restructuring actions authorized by its Board of Directors.Added 9/2/00 Article 1: Northland
action necessary - Daily Tribune
Article 2: Options for Northland
getting slimmer - Daily Tribune
Northland Cranberries, Inc. restructures its operations; will close or sell Bridgeton plant; expects to recognize substantial fourth quarter charge "...the company is continuing to analyze additional options to enhance shareholder value, including continued efforts to explore the sale of some or all of the company's stock or assets..."
8/30/00 - Northland Cranberries Press Release --
Robert E. Hawk has been named President and Chief Operating Officer of the company. As a part of Hawk's direct responsibilities, he will lead the Branded Division sales and marketing effort in place of prior Branded President Scott Corriveau, who has left the company to pursue other opportunities. Under Hawk's direction, the company will reorganize its sales and marketing infrastructure and eliminate approximately 20 positions nationally. Northland is also negotiating a partnering and outsourcing agreement with CROSSMARK, Inc. of Dallas, Texas to represent the Northland and Seneca brands in over 90% of the country. CROSSMARK will provide sales and marketing support to Northland, in addition to traditional brokerage services. CONTINUED
"We need to turn our attention back to profitability instead of revenue growth."
Regarding Northland having been "far too aggressive" in totaling up marketing expenses: "It's safe to say we tried to be something that we weren't. Now, the philosophy is, let's go back to a sales and marketing philosophy that fits the size of our business."
8/31/00 Stock analysts have recommended that stockholders hold onto their Northland stock...HERE
8/31/00 The USDA announced yesterday that they have purchased 1,628,550 pounds of dried cranberries for $8,594,851.32 for distribution to Needy Families, Child Nutrition and other related domestic food assistance programs. This follows the announcement Monday that the USDA is buying 8.6 million pounds of cranberry sauce from Ocean Spray at a cost of approximately $2 million. The government is buying the dried cranberries from Decas Cranberries in Massachusetts, and from Ocean Spray. The Ocean Spray product will be shipped from Tomah, Washington and from Frankfurt, Michigan.
Of the 157,302 cases that are being purchased, 48,510 will be supplied by Decas Cranberries at a cost of $47.25 per case for a total of $2,292,097.50 The remainder of 108, 792 cases will be supplied by Ocean Spray with 16,632 coming from Michigan at a cost of $51.63/case and 92,160 from Tomah at $59.70/case for a total of $6,360,662.16.
The last OSC CMC member who voted against the Ocean Spray Non-block Feds to buy sauce8/29/00 (see update below) The USDA announced Monday that
it's buying 5.5 million pounds* of sauce from Ocean Spray at a cost of $2
million for the school lunch program. *8/30/00 Updated Ed. Note: Ocean Spray reports that the government is purchasing approximately 8.3 million pounds of product, or the equivalent of about 24,600 bbls. of cranberries. While this figure may sound impressive to the uninformed, it really represents the production of just one mid-sized cranberry grower. However, the purchase of sauce for school lunch programs is being touted by the USDA and this gives needed publicity both to the plight of the growers and the health benefits of cranberries. Today (Wednesday), on the National Public Radio Program, Here and Now , Enrique Figueroa was interviewed (click to listen). He made a point of explaining how children can be introduced to cranberry sauce as a year round food, and they in turn can encourage their parents to buy sauce for meals at home. So, while the impact of this purchase on the surplus is minimal, the eventual benefit is likely to be realized in increased sales.
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8/30/00: Cranberry settlement faces review,
from the Trenton Times Cranberry Marketing Committee August meeting8/29/00 The Cranberry Marketing Committee had its August meeting in Plymouth, Mass. on Monday (8/28/00). Rumors that there would be a last ditch effort to have the marketing order rescinded proved to be unfounded. In the morning approximately thirty-seven guests were in attendance. The afternoon saw more than half of them leave. Several cranberry growers came from Wisconsin, Oregon and New Jersey to participate. There was ample opportunity to make statements and engage in discussion with the committee from the floor. There were also animated discussions in the hallways and at the back of the room during breaks. The CMC assessment to grower was increased from $ .06 a bbl to $ .08 with no debate. While there was some acrimony between factions, in general there was a spirit of cooperation. No one handler dominated the meeting and there seemed to be genuine consensus on all major issues. Appeals New Web site: Plymouth County Conservation District (PCCD)
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