Ocean Spray has reported the results of its online cranberry concentrate trading event. Total sales of 197,500 gallons of cranberry concentrate were secured at the latest event on October 27, 2011. Bidders opted for three or six month contract periods, with delivery from November 1, 2011 through January 2012 for the first contract, February 1 through July 2012 in the second and August 1, 2012 through January 2013 for the third contract. The winning prices per gallon of concentrate were $28.10, $28.06 and $28.50 respectively for contracts 1, 2 and 3. A total of 17 companies participated in the October event.
Michael Stamatakos, Vice President, Agricultural Supply and Development at Ocean Spray said, “This is the fifth quarterly trading event where cranberry concentrate prices have increased as worldwide sales of cranberry products have grown. Based on reporting from the Cranberry Marketing Committee, year-over-year industry sales are trending up resulting in a 7% sales increase in crop year 2010. With the increased demand for cranberries this year we expect the overall industry inventory to decrease by over 11% year on year.”
The quarterly cranberry concentrate trading event, established by Ocean Spray in 2009, provides customers with an efficient means of executing fixed-price contracts for future delivery of cranberry concentrate, gaining price stability and supply certainty.
The cranberry concentrate trading event allows the market to determine the price in a fair and equitable way and, by participating, winning bidders secure fixed-priced contracts for each contract period and avoid any change in pricing based on market fluctuations for that period.
The next trading event will take place in January 2012. Opening prices per gallon, set at 85% of the closing prices in the October event, will be:
· $23.89 for contract 1
· $23.85 for contract 2
· $24.23 for contract 3
More information and an explanation of the trading event process can be found at www.oceansprayitg.com/trading-event and www.cranberryauction.info.
The online trading platform for Ocean Spray’s cranberry concentrate was established in 2009 to offer transparent trading and supply certainty for customers. The auctions are run by CRA International and take place on a quarterly basis to ensure interested parties can participate at regular intervals during the year. The online trading platform allows customers to secure cranberry concentrate through an efficient, fair and transparent process. Potential bidders can view contract periods and starting prices at www.cranberryauction.info as they become available.
About Ocean Spray
Ocean Spray is an agricultural cooperative owned by more than 700 cranberry growers as well as nearly 50 grapefruit growers. Ocean Spray is North America's leading producer of canned and bottled juices and juice drinks, and has been the best-selling brand name in the canned and bottled juice category since 1981. Ocean Spray posted fiscal 2010 sales of over $2.0 billion. Ocean Spray’s Ingredient Technology Group (ITG) sells cranberry concentrate worldwide, and offers an extensive portfolio of other fruit ingredients including sweetened dried cranberries, BerryFusions® Fruits, cranberry powders and purée – with total annual sales of approximately $143 million.
About CRA International
Founded in 1965, CRA International is a leading global consulting firm that offers business management, economic and financial expertise. Headquartered in Boston, CRA has offices throughout North America, Europe, the Middle East and Asia. Detailed information about CRA is available at http://www.crai.com.
For further information on how cranberries can be used in your products, please contact:
Tom Jones, Tel: (508) 946 7606 Fax: (508) 946 4594
For press information, please contact: Jenny Mason, Barrett Dixon Bell, Craig Court, 25 Hale Road, Altrincham, Cheshire, WA14 2EY, UK.
Tel: +44 161 925 4700 E-mail: [email protected]