Ocean Spray (cooperative)

Ocean Spray Cranberries, Inc.

Company type	Agricultural cooperative
Industry	Food and beverage
Founded	January 1, 1930 (1930-01-01) in Hanson, Massachusetts, U.S.
Founder	Elizabeth Lee, John Makepeace, Marcus Urann
Headquarters	Plymouth County , United States
Area served	North America, Chile, British Columbia
Key people	Tom Hayes (CEO since 2020)
Products	Cranberry sauce, fruit juice blends, fruit snacks, dried cranberries (Craisins)
Number of employees	2,000 (2013)
Website	oceanspray.com

Ocean Spray Cranberries, Inc. is a U.S.-based agricultural cooperative composed of cranberry cultivators, with its headquarters located in Plymouth County, Massachusetts. The cooperative boasts a membership exceeding 700 growers spread across Massachusetts, Wisconsin, New Jersey, Oregon, Washington, Florida, British Columbia, and Chile. Employing roughly 2,000 individuals, Ocean Spray reported $1.2 billion in sales during the fiscal year 2013 and controls approximately 70% of cranberry production in North America. Its range of products features cranberry sauce, fruit juice blends, fruit snacks, and dried cranberries.

Established in 1930 by Elizabeth Lee, John Makepeace, and Marcus Urann, Ocean Spray is credited with pioneering innovations such as the initial juice blend, the rollout of juice boxes, and the introduction of sweetened dried cranberries marketed under the Craisins brand. The company's cranberry juice has been honored with the ChefsBest Award for superior taste.

Ocean Spray maintains juice-filling operations in strategic locations including Henderson, Nevada, Sulphur Springs, Texas, Allentown, Pennsylvania, and Kenosha, Wisconsin. Since 2020, CEO Tom Hayes has steered the cooperative to capitalize on its dominant market position and extensive grower network to foster growth and sustain its leadership within the fruit beverage sector.

History

Ocean Spray originated as Cranberry Canners, Inc. in 1930 when cranberry growers Marcus L. Urann, Elizabeth F. Lee, and John C. Makepeace founded it in Hanson, Massachusetts. This cooperative was created to gain better control over pricing and market access. Initially, it marketed seasonal cranberry items such as jelly and juice primarily for holiday consumption. Urann was instrumental in developing canned cranberry sauce; the Cranberry Juice Cocktail debuted in 1933, followed by nationwide distribution of jellied cranberry sauce in 1941. The cooperative expanded its reach nationally by becoming the National Cranberry Association in 1946 and adopting the Ocean Spray name in 1957.

In 1959, revenue declines occurred due to a cancer scare linked to herbicide use, prompting Ocean Spray to diversify marketing strategies and establish a cranberry reserve. Executive Edward Gelsthorpe introduced year-round products like Cranapple juice in 1963, which helped increase demand beyond the traditional seasonal peaks. By the mid-1960s, Ocean Spray actively promoted cranberry juice as an ingredient for cocktails.

The cooperative broadened its membership in 1976 to include Florida grapefruit growers; within two years, Ocean Spray Grapefruit Juice secured a 5% market share. That same year saw the relocation of headquarters to Plymouth, Massachusetts. By 1978, Ocean Spray counted 705 growers among its ranks with assets totaling $92 million; sales extended to 50 countries with juice products constituting half of revenue. Additionally, a partnership was formed with California prune growers that year. Sales escalated to $640 million by 1986.

In 1988, Ocean Spray encountered felony charges related to pollution at its Middleboro facility and resolved the matter through fines. The trademark "craisin" was introduced in 1989 alongside a headquarters move to the Lakeville-Middleborough border. By 1991, operations spanned multiple U.S. states plus Canada.

Between 1992 and 1995, Ocean Spray collaborated with PepsiCo to compete against Snapple; following this period, a distribution agreement continued focusing on single-serve beverages. After PepsiCo acquired Tropicana in 1998, Ocean Spray filed suit alleging breach of contract but later withdrew the case.

In 1993, some growers established Northland Cranberries as a primary competitor to Ocean Spray. A Harvard study released in 1994 highlighting health benefits of cranberry juice spurred increased demand and acreage expansion from 30,000 to 50,000 acres by the late 1990s—although by 1999 supply outpaced demand.

Ocean Spray purchased a controlling interest in Nantucket Nectars for $70 million in 1997; however, by 1999 market share had declined by 10%, leading to a workforce reduction of 15% at headquarters. Government-mandated production cuts were imposed in 2000 due to oversupply; growers attempted but ultimately voted against forcing a sale of Ocean Spray in early 2001. That year experienced record-low prices for cranberries; Ocean Spray responded by launching white cranberry juice in 2002 and divested Nantucket Nectars to concentrate on core juice lines. Northland launched an antitrust lawsuit that same year.

Northland made an $800 million bid for Ocean Spray in 2003 which was declined. Subsequently, the cooperative restructured its board to better represent smaller-scale growers and evaluate possible sales options.

A purchase offer from PepsiCo for half ownership of Ocean Spray was rejected by members in 2004; this led some growers to depart from the cooperative. Later that year Ocean Spray acquired Northland’s processing assets for $28 million including a facility located in Wisconsin Rapids.

Following pressure from PETA in 2006 regarding animal testing connected to cranberry research, Ocean Spray ceased funding such experiments. That year also marked renewal of a long-term single-serve juice distribution agreement with Pepsi.

In 2008 the Wisconsin Rapids plant underwent expansion becoming the largest cranberry processing facility globally capable of producing both Craisins and juice concentrates. By this time international markets such as Australia, Britain, Canada, Germany, and Japan were significant contributors to export sales.

Facing excess cranberry juice concentrate inventory by the late 2000s led Ocean Spray to auction surplus stock starting in 2009; depressed prices subsequently triggered class-action lawsuits alleging price fixing among independent growers.

Brand awareness efforts included cranberry bog displays at prominent venues like Las Vegas casinos, Rockefeller Center in New York City, and Epcot at Disney between mid-2000s and early-2010s. In Latin America starting from 2014 Ocean Spray partnered with PepsiCo International for manufacturing and distribution activities.

Ocean Spray shuttered its Bordentown bottling plant after seven decades of operation replacing it with a new Pennsylvania facility opened in 2014 which processes approximately 40% of North American juice volume.

Politically active during the 2012 election cycle, Ocean Spray contributed over $387K opposing California's Proposition 37 concerning GMO food labeling requirements.

To manage another surplus situation by 2012 the cooperative expanded into China’s emerging market until trade tensions between the U.S. and China resulted in tariffs on dried cranberries imposed in 2018.

In pursuit of growth beyond traditional products, Ocean Spray launched Lighthouse Innovation Incubator in 2019 focusing on health-oriented items like herbal tonics and CBD-infused sparkling waters.

January 2020 saw settlement of a $5.4 million class-action lawsuit accusing misleading claims about "no artificial flavors" due to presence of malic and fumaric acids.

In February that year CEO Bobby Chacko was dismissed following violations of harassment policies. By April Ocean Spray achieved full sustainability certification for its cranberries—enhancing its competitive positioning amid rising consumer demand for ethically sourced products.