New York Times, Wall Street Journal, Cape Cod Times, publish stories on Ocean Spray
All published on the same day
by Hal Brown

9/22/99 New York Times' business reporter, Connie Hays, a thirteen year veteran of the New York Times whose recent assignments have included covering Coke and Pepsi, visited Massachusetts last week and interviewed, among others, Ocean Spray CEO Tom Bullock, Sr. V.P. Nancy MacDermott, as well as critics of Ocean Spray management Tom Gelsthorpe, and this reporter's wife, Betty Brown.

The  in depth article by Connie Hays, "Low cranberry prices shake farmer's faith in Ocean Spray" includes quotes from Tom Bullock who was interviewed at the cooperative's headquarters in Lakeville, Mass. Referring to the various problems facing Ocean Spray he says "part of it is the surplus, and part of it is the competitive activity. People are unhappy," referring to grower/owners, "these are good, solid, hard-working farmers, and this is their paycheck. They'll remain unhappy until this turns around. We're doing a lot of things, but it's going to take a while." The Times reports that Bullock is in charge of choosing his own successor and has an agreement to stay on for a year to insure a smooth transition.

Regarding his retirement, he stated "I think it's time for a change, and that's what they'll have -- a change." The Times notes that "Bullock announced his retirement only a day after an advisory committee of growers expressed no confidence in management, although the company said that was not a factor in Bullock's decision."

Industry analysts are also quoted:

"This company was a trendsetter, what happened was they didn't keep evolving." Michael Bellas, chief executive of Beverage Marketing.

"It does appear that the whole board-management interaction the last few years has been somewhat dysfunctional,"  Rex Green, a managing director at Advest in Boston.

"Someone like Kraft or Coke or Triarc is going to come along and seduce them, and then someone they can't control will be controlling them. The Ocean Spray brand would become just another brand in some company's big-brand portfolio." Unnamed industry analyst

"Northland is what people now point to and say, that was the beginning of the Bataan Death March. People are saying now, under no circumstances should they have let the Northland growers leave the co-op." An unnamed consultant.

Others quoted in the article are: Wisconsin Ocean Spray Board member Paul Jonjak;David Farrimond of the Cranberry Marketing Committee; John Swendrowski, President of Northland Cranberries; Robert Rosbe, Treasurer of A.D. Makepeace; and Mary Brazeau Brown, an Ocean Spray grower in Wisconsin.

NY Times article has been archived, available for a fee

The Wall Street Journal story, "Ocean Spray Hires Merrill Lynch To Study Strategic Alternatives" provides little new information to readers of Stressline. The newspaper of record for the investment community does, however, call Ocean Spray a "financially failing company". It confirms that industry insiders consider Pepsi and Cadbury Schweppes as being "top contenders" to purchase Ocean Spray, and that the company has hired Merrill Lynch to assist in exploring strategic options. The story includes the following speculation: "Ocean Spray, which is facing stiff competition amid falling cranberry prices, could be valued at about $1 billion, according to industry officials." Insiders report that the article was put together in about a day after the Wall Street Journal learned that the New York Times was about to publish their story.

To read the story online in the Wall Street Journal you need a paid subscription: here

The Cape Cod Times published "Bogging down - Cranberry growers take aim at Ocean Spray as their livelihoods become threatened " The article, which was several weeks in preparation, includes interviews with John Decas of Decas Cranberries; Ocean Spray CEO Tom Bullock;  Ocean Spray Board member Chip Morse;   Brian Taber, public relations manager of Northland Cranberries;  David Farrimond, Executive Director of the USDA Cranberry Marketing Committee; industry analyst George Dahlman of U.S. Bank Corp Piper Jaffray; Cape Cod cranberry growers Carver Crowell, Linc Thatcher, Kevin Archambault and Tom Grew. It also includes an interview with Marston Mills grower Dave McCarthy, who left Ocean Spray in 1995 expecting to redeem his stock only to suffer what he terms "a breach of faith" when Ocean Spray suspended payments.  This is an important article about the problems at Ocean Spray and in the cranberry industry. Cape Cod Times