Ocean Spray (cooperative)

Ocean Spray Cranberries, Inc. is an American agricultural cooperative of cranberry growers headquartered in Plymouth County, Massachusetts. It currently has over 700 member growers (in Massachusetts, Wisconsin, New Jersey, Oregon, Washington, Florida, British Columbia and other parts of Canada, as well as Chile). The cooperative employs about 2,000 people, with sales of $1.2 billion in fiscal year 2013 and accounts for 70% of North American cranberry production. Their products include cranberry sauce, fruit juices, fruit snacks, and dried cranberries.

The cooperative has made a number of innovations, including the first juice blend, the first juice boxes, and sweetened dried cranberries (Craisins). Its cranberry juice won the ChefsBest Award for best taste.

Ocean Spray has juice-filling facilities in Henderson, Nevada; Sulphur Springs, Texas; Allentown, Pennsylvania; and Kenosha, Wisconsin.

Ocean Spray was formed as Cranberry Canners, Inc. in 1930 by three cranberry growers who wanted to expand their market for cranberries. Marcus L. Urann, a lawyer-turned-grower, Elizabeth F. Lee, a New Jersey-based grower, and John C. Makepeace, the nation's largest grower at the time, based their cooperative in Hanson, Massachusetts. As a cooperative, they would be partially immune to antitrust laws, allowing them to set better prices for all members without being considered a monopoly. The business was initially seasonal, with growers selling cranberry jelly and a (much tarter form of) juice for Thanksgiving and Christmas. Urann, the first grower to can cranberry sauce, proved to be instrumental in the canning and bottling of cranberry products. Cranberry Juice Cocktail was introduced in 1933 and the jellied cranberry sauce “log” became available nationwide in 1941. The group added members from Wisconsin, Oregon, and Washington, and became the National Cranberry Association in 1946. In 1957, it became Ocean Spray after acquiring the name and logo from a fish company in Washington.

In 1959, a cancer scare linked to herbicide used by growers resulted in a significant loss of revenue and crop. Fearing their vulnerability with just one product, the cooperative decided to also go into marketing. A cranberry reserve and proceeds pool was established. In 1963, executive Edward Gelsthorpe worked with Sylvia Schur to develop Cranapple juice, a product that brought the cranberry to greater popularity and increased usage to year-round, earning Gelsthorpe the nickname "Cranapple Ed". The co-op soon produced Cran-Apple and Cran-Grape variations as well. During the decade, Ocean Spray began pushing cranberry juice as a cocktail ingredient. By 1966, drink recipes were printed on every bottle of Cranberry Juice Cocktail.

In 1976, the cooperative expanded its membership to grapefruit growers in Florida. Within two years, Ocean Spray Grapefruit Juice had captured 5% of the market and was available in 60% of US stores. In September 1976, the headquarters was moved from Hanson to Plymouth, Massachusetts and a museum, called Cranberry World, opened the following year. The museum was later moved to Edaville Railroad in Carver, Massachusetts in 2002. By 1978, Ocean Spray was made up of 705 growers and held $92 million in assets with sales in 50 countries. By this point, the sale of fresh cranberries made up only 6% of Ocean Spray's business and half its sales came from juice. That year, it also forged a manufacturing partnership with prune growers in California. By 1986, sales reached $640 million.

In 1988, the company was indicted on felony charges under the Clean Water Act that, from 1983 to 1987, its Middleboro, Massachusetts processing plant had polluted the town's sewer system and the nearby Nemasket River. Ocean Spray settled the case by pleading guilty to 21 misdemeanor charges and paying a $400,000 fine. In 1989, Ocean Spray introduced the craisin as a registered trademark. The company's headquarters were also moved to a building on the Lakeville-Middleborough town line.

By 1991, the company had operations in Massachusetts, Wisconsin, New Jersey, Washington, Oregon, Florida, and Canada. Ocean Spray entered into a joint venture with PepsiCo starting in 1992 as a response to the sudden popularity of Snapple. However, the venture only lasted until 1995 and a distribution deal was maintained thereafter, focusing on single-serve offerings. Pepsi ultimately purchased Tropicana in 1998. Ocean Spray sued, citing breach of their exclusive contract, before ultimately dropping the case.