Ocean Spray and Northland finally team up

Related tags Ocean spray Cranberry

After rejecting an $800 million offer for its juice business from
Northland Cranberries early last year, US co-operative Ocean Spray
has decided the time is right to enter into an agreement with its
rival.

In a $28 million purchase-and-sale agreement signed by the two companies, Ocean Spray​ will buy Northland's 172,000-square-foot cranberry receiving and concentrate manufacturing plant, as well as its adjacent office building, and the company's existing inventory of frozen, unprocessed cranberries. However, Ocean Spray will not buy the Northland brand or its retail juice business.

In addition, Ocean Spray will pay Northland $5 million to secure first option on the purchase of 14 Northland-owned cranberry marshes in Wisconsin, leaving three cranberry properties in the hands of Northland. Ocean Spray and its grower-owners will have 180 days to exercise the option of buying those acres at a set price.

Ocean Spray and Northland today also signed a 10-year agreement through which Ocean Spray will receive and convert into concentrate all of the cranberries produced by Northland and its contracted growers. Using that concentrate, Northland will continue to bottle, market and sell its own juice brands.

"Ocean Spray is growing, not only as a brand, but as a manufacturer of cranberry concentrate for the worldwide market,"​ said Randy Papadellis, president and CEO of the Lakeville, Massachusetts-based grower cooperative.

In July, the company announced it was rolling out a plumper version of its health ingredient onto the European market for use in bakery products in an attempt to improve a bottom line hit by high yields and low prices.

A couple of months earlier, the credibility of the cranberry as a health-giving ingredient received a boost when, AFSSA, the French government's food safety authority, confirmed that the powder and juice of North American cranberries (vaccinium macrocarpon) "help reduce the adhesion of certain E. coli bacteria to the urinary tract walls"​.

Gunter Haesaerts, managing director of Gika, which distributes Ocean Spray's ingredients in France, said he is currently working on another four health claims for the product, aiming for another approval in 2005.

This could feasably be the only fruit with this status for the considerable future as the successful claim was made possible by million dollar investment into research on this cranberry species.

"Blueberries also have significant benefits but the blueberry industry is scattered worldwide, with no major producer willing to invest to this extent. Ocean Spray has 65 per cent of the world's cranberry production and had the muscle and resources to invest in the science,"​ said Haesaerts.

Related news

Related products

show more

Dairy proteins now available from Univar Solutions

Dairy proteins now available from Univar Solutions

Content provided by Univar Solutions | 20-Sep-2023 | White Paper

Foodology by Univar Solutions proudly partners with Leprino Nutrition as their North American distributor of nutritional ingredients and dairy products.

Clean Label Ingredients for Shelf-Life Extension

Clean Label Ingredients for Shelf-Life Extension

Content provided by Lesaffre | 19-Sep-2023 | White Paper

Product waste skyrockets without anti-staling agents and mold inhibitors. But consumers are scrutinizing labels more than ever before. How can you have...

Sustainability Claims Impact on Consumer Purchases

Sustainability Claims Impact on Consumer Purchases

Content provided by ADM | 07-Sep-2023 | Insight Guide

Discover what consumers say about sustainability claims versus what they do in the grocery aisle. Find out in this can’t-miss proprietary study from ADM:...

Cost-effective & efficient: Angel Prebake Solution

Cost-effective & efficient: Angel Prebake Solution

Content provided by Angel Yeast – Yeast and Baking Ingredients | 31-Jul-2023 | White Paper

After years of systematic research and practical application in the production process and essential ingredients for frozen dough, Angel's pre-bake...

Related suppliers

Follow us

Products

View more

Webinars