Ocean Spray moves into Chilean cranberry market
The acquisition will help Ocean Spray broaden its multinational footprint and establish a considerable presence in Chile's XIV Region (Los Ríos), an important cranberry growing zone.
Cran Chile will maintain operation of cranberry cultivation, including production of raspberry and blueberry concentrate.
Ocean Spray President Randy Papadellis said in a media statement that Ocean Spray was proud to integrate the Cran Chile team.
"Cran Chile’s reputation for quality and excellence in cranberry processing is a good strategic fit and will better help the Cooperative accelerate the growing global demand for dried cranberries, the fastest-growing product in Ocean Spray’s portfolio," Papadellis said.
While this is Ocean Spray's first international acquisition, the brand reaches beyond the United States. The cooperative's cranberries are currently included in over 1,000 products located in over 50 countries.
"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," Papadellis added.
"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."
As part of the transaction, Ocean Spray has purchased all of the land and assets related to the reception, storage, processing and distribution of dried cranberries.
All 100 employees at the Cran Chile plant will be transferred to employment under Ocean Spray. A growing company, Cran Chile's cranberry operation is one of the biggest in the world.
Cran Chile Managing Partner Gordon Swanson said the deal would help improve the demand for cranberries in new markets.
“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," Swanson said.