Ocean Spray Announces 2013 Financial Results

  Ocean Spray Announces 2013 Financial Results

Highlights include record proceeds returned to Grower-Owners and strong sales

Business Wire

LAKEVILLE-MIDDLEBORO, Mass. -- December 2, 2013

Ocean Spray Cranberries, Inc., a grower-owned agricultural cooperative, today
released its fiscal 2013 financial results, which included strong net sales
and record net proceeds paid to its Grower-Owners.

Highlights included:

  *For the fiscal year ending August 31, 2013, Net Sales of $1.66 billion, on
    par with the Cooperative’s record high in fiscal year 2012.
  *Fiscal year Net Proceeds Available to Common Shareholders of $380 million,
    up 15.5% over the prior year.
  *A record $326.0M in returns paid to A Pool Grower-Owners for Pool Year
    2011, which closed in March 2013; during this fiscal year, Ocean Spray’s
    A-Pool paid $60.53 per barrel; its B-Pool paid $28.67 per barrel; and its
    Citrus Pool paid $1.65 per fruit solid pound.
  *Ocean Spray’s Ingredient Technology Group (ITG) dried cranberry business
    experienced particularly strong growth for the year in both domestic and
    international markets, surpassing the 100 million pound mark for the first
    time.
  *Completing a series of transactions with CoBank, resulting in increased
    availability under our financing arrangements by a total of $215 million.
    These include a $100 million long-term subordinated debt note and a new
    $100 million 10-year fixed-rate term loan through CoBank and the Farm
    Credit system. This financing will allow Ocean Spray to rebalance its
    capital position to create a more conservative structure and support plans
    for cooperative growth.

“This was a strong year for Ocean Spray in terms of continuing to deliver a
premium to our grower-owners and advancing a number of strategic initiatives
that will grow our business at home and abroad,” said Randy Papadellis, Ocean
Spray’s President and Chief Executive Officer. “We have one of the world’s
strongest brands working on our behalf and we will continue to invest
aggressively in business-building opportunities to promote growth across all
of our business segments.”

Ocean Spray achieved a number of business advancements in Fiscal Year 2013,
including:

  *The launch of Cran-Lemonade™, now distributed in 80 percent of grocery
    accounts nationwide.
  *The launch of Craisins® Dried Cranberries in two new package forms:
    canisters and 6-count snack boxes.
  *Launched the eighth domestic dried cranberry line in Middleboro, Mass.,
    and made significant progress in the construction of a state-of-the-art
    beverage plant in Pennsylvania’s Lehigh Valley.
  *Finalized a strategic acquisition of the manufacturing assets of Cran
    Chile in Lanco, Chile, which includes a receiving station, a juice
    concentrator, and a 12 million pound dried cranberry production line.

Over the next several years, Ocean Spray plans to focus on continuing to grow
its dried cranberry business, expanding its cranberry food and beverage
portfolio to meet new consumer needs both domestically and abroad, as well as
continued investment in cranberry health research. Ocean Spray also plans to
bring its new beverage facility in the Lehigh Valley of Pennsylvania online in
the first quarter of 2014.

About Ocean Spray

Ocean Spray is a vibrant agricultural cooperative owned by more than 700
cranberry and grapefruit growers in the United States, Canada and Chile who
have helped preserve the family farming way of life for generations. Formed in
1930, Ocean Spray is now the world’s leading producer of cranberry juices,
juice drinks and dried cranberries and is the best-selling brand in the
bottled juice category. The cooperative’s cranberries are currently featured
in more than a thousand great-tasting, good-for-you products in over 50
countries worldwide. With more than 2,000 employees and nearly 20 cranberry
receiving and processing facilities, Ocean Spray is committed to managing our
business in a way that respects our communities, employees and the
environment. In fiscal year 2013, Ocean Spray posted record-high gross sales
of $2.2 billion and net proceeds of $380 million. For more information visit
www.oceanspray.com or our corporate blog at www.insidethecranberry.com.

Contact:

Ocean Spray
Kellyanne Dignan, 508-923-3205
KDignan@oceanspray.com
or
Weber Shandwick for Ocean Spray
Sara Steindorf, 617-520-7259
SSteindorf@webershandwick.com
 
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