12.18.241.247 writes:

Emotions are running high. Grower/Owners continue to feel they are in the dark about the facts required to make an intelligent decision for the future of their company. It certainly appears that change is not coming as quickly as many feel it should. In light of all that, I would like to comment on Mr. Shawa's call to action and to provide something for Grower/Owners to think about.

I feel some of the most intelligent postings have been placed by Nabiel Shawa during the past few months. I do not agree with his solution of selling the cooperative, but that is just a difference of opinion. He may be right, or I may be right that a merger with other fruit cooperatives is a better strategy than selling all or part of OSC, only time will tell. (If you missed my previous comments please review the forum's history.)

The sad fact is that Ocean Spray has lost its monopoly position in cranberry. This monopoly position allowed OS to make mistakes over the years and continue to grow the business successfully. I firmly believe that the high price of independent fruit in the mid-1990's is a large factor in the surplus that is creating these problems. I also believe that Ocean Spray tried to keep prices in line during this period knowing that company's would reformulate their products and demand would drop over time. No beverage company is going to push a low margin beverage that uses large quantities of an $85.00 (or higher) per gallon concentrate. The independent growers received a windfall during those years and OSC growers did not. My guess is that they can weather this storm more easily than the grower/owners of the cooperative.

My opinion is this.

1) Ocean Spray has mis-managed the business because management does not know how to function in a competitive environment. Management came up through the ranks when building the brand under monopoly control was easier. They did a very good job in that environment.

2) The SAP implementation was started too late to be successful. The sad part is that many members of the team are/where valuable OSC employees and could not make it work despite their best efforts. (I think it is important to remember the people who continue to do their best for the grower/owners in a very difficult environment. Management is responsible, don't let your anger discourage all employees.)

3) The Board is too large. Find a way to reduce the Board size to 12 or 15. At that point the only Board decision should be "Keep management, or replace management".

4) Cranberries have entered a normal, yet severe, (for most other crops) agricultural cycle. Sadly, some small, less efficient farms will not make it. This is the nature of agriculture (at least agriculture not subsidized by the Government), and is a necessary aspect of a free market economy.

5) Management has become too bureaucratic and political over the past decade. The Senior Managers are intelligent people placed in roles not well-suited for their skill sets. Interesting how the senior people in Manufacturing, Grower Relations, Information Services, and Marketing all came from Finance. Cross-training is great, but pull too many out of their comfort zone and their area of expertise, and mistakes will be made. These managers are intelligent people, yet I disagree with their much of their management style. Politics became the rule, hard work and free thinking became secondary. (Just an opinion)

6) Henderson was ... an interesting idea.

7) Ocean Spray is a marketing company, not a manufacturing company. Think about how to get back to basics. Some companies are excellent at manufacturing ... let them do it. Co-pack to cut costs. You have good business people to manage co-packing. Sell and close more plants. The union shops are not worth the hassle. Let somebody else, better suited for it, manage the lines.

8) Get through whatever changes the grower/owners feel is right. Don't delay to a point where you lose all the bright, hard-working employees within your company. (and for those not familiar with my postings. I am not a current employee of OSC or a competitor).

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