Recent deals boost bottom line for Northland Cranberries
rival Ocean Spray plus sale of branded juice business, reporting a
lift in income for the third quarter this year.
Figures for the Wisconsin Rapids-based firm rose from $0.7 million in 2004 to $3.4 million for the same period this year.
The results included a $6.2 million gain from the sale of eight of the company's cranberry marshes to Ocean Spray.
Last year Ocean Spray paid Northland $5 million to secure first option on the purchase of 14 Northland-owned cranberry marshes in Wisconsin, leaving three cranberry properties in the hands of Northland.
The deal figured in a deal which also saw Northland entering into a $28 million purchase-and-sale agreement with the co-operative Ocean Spray, allowing the latter to buy its rival's 172,000-square-foot cranberry receiving and concentrate manufacturing plant; as well as its adjacent office building, and the company's existing inventory of frozen, unprocessed cranberries.
Northland, however, retained control of its brand and retail juice business. But in February this year Northland sold its branded juice business to Port Washington, New York based Apple & Eve firm for around $10.8 million,
The deal included Treesweet and Awake brands, and an assignment of the Seneca brand license agreement between Northland and Seneca Foods Corporation.
Reporting this week, Northland said net revenues for the third quarter of fiscal 2005 were $10.8 million, an increase from last year's third-quarter net revenues of $9.6 million - after giving effect to the sale of the branded juice business, which is reported as a discontinued operation.