Ocean Spray sold its concentrate in three contract periods from August through to October 2011; November 2011 through to April 2012; and May 2012 through to October 2012.
Prices were $21 a gallon for period 1; $21.84 for the second period and $24.14 for the third.
At its auction in May this year, Ocean Spray sold 166,750 gallons at $20.58/gallon for period 1 (three months, $0.42 lower); $22.75 for the second delivery period (six months, $0.91 higher), and $23.10 for the third delivery period (six months, $1.04 lower).
Michael Stamatakos, Ocean Spray’s vice president in Agricultural Supply and Development said the Massachusetts-based firm was very happy with how the auctioning system was performing for its cranberry concentrates.
“When we first introduced the online trading concept to the industry, our objective was to establish a fair and transparent trading system,” Stamatakos said.
“After two years of successful events, the online trading platform has proven a distinct advantage for customers by allowing them to plan ahead for their concentrate needs. Ocean Spray held a robust trading event that went six rounds of bidding. The trading event ensures fixed-priced contracts for each contract period which avoids any change in pricing based on market fluctuations for that period.”
For this auction those starting prices were:
- $17.49 for contract 1 (85% of $20.58)
- $19.34 for contract 2 (85% of $22.75)
- $19.64 for contract 3 (85% of $23.10)
Using the same 85 percent formula starting prices at the next auction – scheduled for October – will be:
- $17.85 for contract 1
- $18.56 for contract 2
- $20.52 for contract 3
Ocean Spray posted global sales of about $2bn in 2010, of which $140m was generated from its ingredients division which includes cranberry concentrate, dried cranberries, fruit fusions, powders and purees.