|Cranberry Giant Made to Look Like a Turkey|
|Subject||Comparisons with competition|
The cranberry industry is dominated by Ocean Spray, which sells cranberry drinks and other products. The company is a cooperative, owned by 920 cranberry farmers and citrus growers. The success of Ocean Spray has been its control of the supply of cranberries.
However, it is losing its control of the market. One Ocean Spray member founded a breakaway company, Northland Cranberries, in 1996 and produced a 100 percent juice version of Ocean Spray's Cranberry Juice Cocktail, which is only 27 percent juice. Ocean Spray's product response, Wellfleet Farms, has not fared well. Northland already has 10 percent of the cranberry juice market. Ocean Spray plans more new drink products.
As a result, there is overproduction of cranberries and growing inventory. Prices paid to cooperative members by Ocean Spray fell from $55 for a 100-pound barrel in 1998 to $32 to $38 in 1999.
(Updated December 1, 1999)
|Source||Constance L. Hays, "Harvest of Discontent," The New York Times, September 22, 1999.|
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