Through the streamlined process, Ocean Spray sold a total of 230,000 gallons of its concentrate at a clearing price of $33 per gallon for the first contract delivery period (six months following the auction) and $34 per gallon for the second contract delivery period (the subsequent six months).
Open to qualified buyers worldwide, Ocean Spray established the auction to sell its concentrate to all participants on a level playing field. Winning bidders now have the guarantee of their specified volume of concentrate supplied at the price determined in the auction.
Michael Stamatakos, vice president, agricultural supply and development at Ocean Spray, said: “We’re pleased with the outcome of this first auction. We believe the auction is a trusted and reliable method of facilitating commodity sales that will allow Ocean Spray to continue to deliver quality cranberry concentrate through an open and efficient process.”
Consulting firm CRA International developed the online trading system and served as the trading manager for the auction process. Bidders were able to track availability and pricing of the concentrate, making for a transparent approach.
Ocean Spray cranberry concentrate is a key ingredient in a variety of juice drinks, preserves, dairy products, confectionery and dietary supplements. The date of the next cranberry auction will be announced in the next few weeks.
Source: BDB for Ocean Spray
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