Swendrowski answers a harsh critic

3/24/02 An anonymous poster writes on The Forum "I don't get it. John Swendrowski drove Northland Inc into the ground, wiped out hundreds of millions of investor money, including at least $30 million of State of Wisconsin Employees Pension Fund, caused the banks to write off $80 million of their loans to Northland and no one, and I mean, no one, is asking to remove Swendro from his executive position in Northland. Hawthorne on the other hand, doubled the earnings of Ocean Spray between F2000 and F2001, restored new product introduction with what looks like the best new product introduction in White Cranberry. Re-introduced national advertising on cranberry and increased consumption of cranberry and you are asking the Board to get rid of Hawthorne? How many times do you need to be reminded that your future prosperity is tied to the success of Ocean Spray? Without Hawthorne and his team, there will be no turnaround. Swendro can not save the cranberry industry as much as you want him to."

Northland Cranberries CEO John Swendrowski responds with the following rebuttal:

3/24/02 Just to set the record straight I have never claimed to be able to solve the problems of the cranberry industry. I have specifically pointed out that only one person has that ability. The CEO of Ocean Spray's business plan determines the value of everyone's fruit because Ocean Spray controls 70% of the supply. However the CEO of Ocean Spray decides to utilize that fruit in his business plan will determine the value of all the cranberries grown.

Northland investors lost a significant amount of their investment, Northland's banks took huge losses on their loans, myself and other officers and employees suffered huge losses on our stock and options. Since Northland is the largest GROWER in the world it is only logical that as the value of cranberries crashed Northland like all growers took the largest share of the industries lost value.

You act like Ocean Spray did not suffer due to the business plans of it's CEO's during the last 3 years. Please answer this question. Ocean Spray earned $280,000,000 in 1998. Since that time when the business plan decided to chase market share Ocean Spray earned $135,000,000 in 1999, $73,000,000 in 2000, $143,000,000 in 2001.

What happened to the $490,000,000 in lost profits over those three years with the new business plan?
Like it or not that is money that Ocean Spray's INVESTORS (growers) lost just like Northland investors lost money during the period. Northland did not have the luxury of passing on it's losses to its investors without the results being public like the Ocean Spray CEO.

You also fail to compare Ocean Spray's financials to Northland on an equal basis. Northland charged over $75,000,000 in losses for cranberries it grew or purchased from other growers, Ocean Spray does not grow cranberries thus the loss was not on their books but on the books of its INVESTORS (growers).

Northland also was forced to charge over $70,000,000 against the value of it's bogs, Ocean Spray does not own bogs thus once again that loss does not show on Ocean Sprays financials. The loss of value for the Ocean Spray INVESTORS (growers) in the value of their farm property is close to a BILLION dollars. Where is that reflected on the Ocean Spray financial statement.

Please do not act like Ocean Spray has operated brilliantly while Northland has acted like a fool.

Ocean Spray's CEO's business plan has destroyed the value of cranberries for everyone. Clobbering the competition and trying to put competitors into receivership comes at a price. The impact of that attitude is reflected in Northland's financials. The impact of that plan on Ocean Spray INVESTORS is not as obvious. One must add up the losses of both Ocean Spray the COMPANY and the losses of the INVESTORS (growers) in order to draw a true comparison with Northland.

As a direct result of the CEO's of Ocean Spray's business plan Northland was forced to restructure. Its investors, bankers and employees have taken their losses. Northland is now structured to compete against the "chase the market share plan" of Ocean Sprays CEO. As I have stated before YOU WON. You wiped out the shareholders, bankers, employees of the old Northland. The restructured Northland will not be such an easy target because like many growers we have learned how to cut our costs and survive.

Because the business plan of Ocean Spray directly determines the value of the cranberries we all grow I will continue to be critical of any plan that sacrifices grower price (and growers) for market share. Northland can now compete against any plan and we will adjust our business plan based on Ocean Sprays actions. Northland's Turn-Around will come at the detriment of it's investors, bankers, and employees. Ocean Sprays Turn-Around will primarily come at the expense of its INVESTORS (growers).

In my opinion had the business plan of Ocean Spray been focused on grower price instead of market share the losses in the industry would have been minimal. I will continue to voice my opinion on issues that directly impact grower price because Northland is a grower. I will continue to fight for any proposal that will increase grower price. And, like every other grower I will be the victim or beneficiary of Ocean Spray's CEO's business plan.


Editor's Comment:

We believe any poster's credibility would be greatly enhanced if they would sign their names. In this case, a poster who may or not be the original poster answered Swendrowski less than an hour after he posted. You can read that message along with any subsequent debate on The Forum.

Front Page

Hosted by www.Geocities.ws

1