Tropicana premium edition




















The s ended on another high note, when Tropicana Products, Inc. The infusion of capital from the stock offering set the stage for even more rapid growth at Tropicana. Among the developments of the early s was the launch of a company-owned train the "Great White Train," later painted orange , which shipped bottles of juice from Bradenton to a distribution center in New Jersey. Continuing its moves to lessen its dependence on outside suppliers, Tropicana opened a box plant in and began making its own corrugated boxes.

The following year Tropicana opened a new processing facility in Fort Pierce, Florida, a town on the Atlantic side of the state. Although the so-called "orange juice wars" would not begin in earnest until the s, a few skirmishes between Tropicana and Coca-Cola's Minute Maid took place in the s.

Coca-Cola in took direct aim at Tropicana's stranglehold on both the New York metropolitan area market and the chilled juice sector with the introduction into that area of Minute Maid chilled juice that had been reconstituted from frozen concentrate.

This was the beginning of a long-running debate between the companies over which had the superior product. Tropicana contended that not-from-concentrate chilled juice was obviously superior since it was bottled after being pasteurized right out of the orange.

Minute Maid argued that the concentrating process gave it the opportunity to blend the juice of oranges picked at different times of the year, thereby overcoming seasonal variations in orange taste and quality and giving the resultant juice a more consistent flavor and better overall quality.

In any event, Minute Maid, backed by Coke's deep pockets, gained one edge--it quickly became the first nationally available chilled orange juice. The Tropicana-Minute Maid rivalry heated up further in when the former reentered the market for frozen concentrate.

By the mids, Tropicana had expanded its market range within the United States though it still was not a national brand and had gained a presence in the Bahamas, Bermuda, the West Indies, and several countries in Europe.

Despite the Minute Maid entry into the chilled juice sector, Tropicana was the main beneficiary of the faster growth of chilled juice versus frozen concentrate. Whereas in the late s chilled juice accounted for only 20 percent of the overall orange juice market, by the late s it accounted for 31 percent. The health of Tropicana was reflected in an endless stream of suitors that attempted to woo the company in the s. On three separate occasions--in April , June , and July Tropicana and Kellogg, the cereal giant which sought to extend its breakfast offerings to include orange juice, agreed in principal to merge only to have Rossi walk away from the deal before it became final.

Following the third failed Kellogg takeover, articles in the press focused on Rossi's inability to "let go"--the company founder still controlled 20 percent of Tropicana stock, dominated a more or less rubber-stamp board of directors, and held onto the positions of chairman, CEO, and president at the age of Observers also worried about the company's lack of a succession plan. In October Rossi finally gave up the presidency, appointing to that post Kenneth A. Barnebey, an executive vice-president and director who had joined the company in as sales supervisor.

The acquisition immediately ran into regulatory difficulties, and in a Federal Trade Commission FTC administrative law judge ruled that the purchase violated antitrust law because Beatrice could have expanded its own chilled juice brand--which had a market share of one percent--instead of buying Tropicana.

The judge ordered Beatrice to divest Tropicana and pay to the government any Tropicana-derived profits. Following Beatrice's appeal, the FTC overturned the judge's ruling in , finding that the acquisition was not illegal.

Barnebey headed up Tropicana Products following the acquisition but by Richard Walrack, a year Beatrice veteran, had taken over as president of the Beatrice subsidiary Rossi died in at the age of Two important events in shook the orange juice industry and intensified the "orange juice wars. That year the declining frozen concentrate sector was led by Minute Maid's 25 percent share, with Citrus Hill holding seven percent and Tropicana four percent.

Tropicana still held the top spot in the rapidly growing chilled juice sector with a 28 percent share, with Minute Maid claiming 18 percent and Citrus Hill nine percent.

The second key event of was an orange freeze which forced Tropicana to raise the price of its not-from-concentrate chilled juice three times in quick succession. Amazingly, the company saw no drop-off in purchasing, as customers were clearly willing to pay a premium for what they perceived to be a superior product--the not-from-concentrate juice. Funds from the higher prices were used to begin expanding the Tropicana brand outside of its strongholds in the Northeast and Southeast.

Around this time, Tropicana--with the help of Beatrice--became more sophisticated in its marketing and product positioning. It rebranded its not-from-concentrate chilled juice Tropicana Pure Premium, while the from-concentrate version, which it had sold for a number of years, was first called Gold 'n Pure and then Tropicana Season's Best.

Under Beatrice, Tropicana was also more aggressive about introducing new products, such as the debuted Tropicana Pure Premium HomeStyle orange juice, which featured added pulp. Meanwhile the door to the Tropicana president's office became a revolving one, as Walrack resigned in June for "personal reasons," and his replacement--Wesley M. Thompson, who had been hired away from a Coca-Cola executive marketing position--did the same only nine months later.

Stephen J. Volk, who had previously worked at PepsiCo, was named president in March Sales in the United States of chilled orange juice outpaced concentrate for the first time in , as consumers continued to buy increasing amounts of convenience foods. Tropicana was well-positioned to take advantage of this trend. Over the next two years, Beatrice was stripped of much of its assets to pay down debt.

Tropicana was part of this asset sale; it was sold to The Seagram Company Ltd. Under Seagram, Tropicana continued to expand within the United States, becoming a truly national brand for the first time.

Also in an aggressive expansion mode, Minute Maid aimed squarely at Tropicana with the introduction of its own not-from-concentrate chilled juice brand, Minute Maid Premium Choice.

Tropicana subsequently sued Coca-Cola over its advertising and packaging slogan for Premium Choice, which included the phrase "straight from the orange. Despite the lawsuit, by Minute Maid had That year, however, Tropicana edged past Minute Maid in the overall U. Tropicana and Minute Maid were soon battling anew to gain share in the aftermath of Citrus Hill's withdrawal.

Tropicana gained the initial upper hand, and by had extended its lead in the overall orange juice market to a somewhat comfortable Even while it was ascending to the top spot, Tropicana continued to be beset by management turnover. Robert L. Freedman of the Wall Street Journal. He resigned in January for "family considerations," with Myron A.

Roeder taking over. From the late s through the mids, Tropicana expanded aggressively, both outside of its core orange juice products and outside of the United States. In the company introduced the Twister line of bottled and frozen juice blends; the "flavors Mother Nature never intended" were eventually to include apple-berry-pear, orange-peach, cranberry-raspberry-strawberry, and orange-strawberry-guava.

Three years later, a low-calorie Twister Light line made its debut. Also in a joint venture between Tropicana and Kirin Brewery Company, Limited of Japan began importing and marketing orange juice in that country. In Tropicana introduced Grovestand orange juice, a ready-to-serve product that was touted to have the consistency and taste of fresh-squeezed juice. As the s continued, Tropicana expanded further internationally, entering several more Latin American countries as well as Hong Kong and China.

The company also scored a promotional coup in when the stadium for the Tampa Bay Devil Rays major league baseball team was named Tropicana Field. Oh, so good!

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