Ocean Spray expands global reach with first international acquisition
“This acquisition will enable us to better compete in the global dried fruit market and provide long-term benefits in returns for our grower owners,” said Randy Papadellis, president and CEO of Ocean Spray.
“It also represents a new frontier for our cooperative that will diversify our fruit supply with a counter-seasonal supply of cranberries from Chile, enable us to distribute dried cranberries from a strategic South American location to new and existing international markets, and increase our capacity to produce dried cranberries by 12 million pounds annually.”
The company, however, said it was too soon to discuss any potential future expansions. A spokesperson for the company noted that, currently, its key markets outside the US include Canada, United Kingdom, France, Germany, Australia and Taiwan.
The company told NutraIngredients-USA that, in addition to dried cranberries, the facility will also produce 50 brix cranberry juice concentrate, and maintain and enhance Cran Chile’s current dried cranberry and concentrate customer base.
“Ocean Spray will use some concentrate in Ocean Spray branded products. Ocean Spray will also plan to sell cranberry concentrate produced at the facility to existing and new international customers,” said the company.
Cran Chile (full name Agrícola Cran Chile Limitada) has accepted an invitation to become a member of the Ocean Spray Cooperative, and their approximately 1,450 acres of cranberry farms will join the Cooperative, added Ocean Spray.
Ocean Spray dominates the US cranberry industry, with growers delivering an estimated 6.2 million barrels to the Cooperative in 2012, out of a total industry-wide global crop of approximately 10.7 million barrels.
The cooperative’s cranberries feature in more than a thousand products in over 50 countries worldwide.
“The opportunity represents an exceptional strategic fit for two industry leaders. In addition to becoming a major supplier of cranberries to Ocean Spray, we look forward to becoming a major member of the cooperative,” said Gordon Swanson, Managing Partner of Cran Chile.