Sunkist Growers, Incorporated

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Sunkist Growers, Incorporated
Company type Agricultural marketing cooperative
Industry Agriculture
Founded1893;131 years ago (1893) in Claremont, California
FounderP.J. Dreher and Edward L. Dreher
Headquarters
Valencia, California
,
United States
Area served
California and Arizona
Products Citrus
Website www.sunkist.com

Sunkist Growers, Incorporated, branded as Sunkist, is an American citrus growers' non-stock membership cooperative composed of over 1,000 members from California and Arizona headquartered in Valencia, California. [1] Through 31 offices in the United States and Canada and four offices outside North America, its sales in 1991 totaled $956 million. It is the largest fresh produce shipper in the United States, the most diversified citrus processing and marketing operation in the world, and one of California's largest landowners. [2]

Contents

History

Women packing oranges at the Sunkist packing plant, Redlands, California, 1943 Redlands, California. Packing oranges at a cooperative packing plant..jpg
Women packing oranges at the Sunkist packing plant, Redlands, California, 1943

In the late 1880s, California citrus growers began organizing themselves into cooperatives, with the goal of increasing profits by pooling their risk and increasing their collective bargaining power with jobbers and packers. The economic depression that began in 1893 worsened farmers' situations, and intensified their desire to self-organize to their own benefit. [3]

In 1893, P.J. Dreher and his son, Edward L. Dreher, who became the "father of the California citrus industry" (1877–1964), along with several other prominent citrus farmers and land owners formed the Southern California Fruit Exchange in Claremont, a small college town near Los Angeles. The exchange originally represented only orange growers; in 1896 lemon growers joined. [3] Growers from Los Angeles County, Orange County, and Riverside County were among the original members and later expanded to growers and groves in San Bernardino and Ventura Counties. By 1905, the exchange represented 5,000 members, 45% of the California citrus industry, and renamed itself the California Fruit Growers Exchange. Between 1927 and 1939, the exchange sold more than 75% of all California citrus. In the 1947–48 season, the exchange had around 15,000 citrus growers. [4] In 1952, it changed its name to Sunkist Growers, Inc.

Organizational structure

The Sunkist organization features three levels in its hierarchy: local, district, and central associations. Individual growers belong to their specific local organization; local organizations are part of a district organization, and districts participate in a central organization. The cooperative's main purpose is to create systems enabling fruit from multiple growers to be efficiently harvested, sorted into various sizes and grades, and packed and shipped across the United States in response to shifting demand. [5]

Each level of the exchange had its own distinct purpose. By joining the exchange, citrus growers pledged to deliver all their fruit to their local packing unit.[ citation needed ] The local packing unit was responsible for helping growers to harvest their citrus, then place the citrus through a packinghouse system to treat, grade, and pack the product. The local exchanges pooled the grower fruits and later redistributed profits back to growers.[ citation needed ] The district exchanges served as the selling agent for its local packing units by setting pricing and determining markets. The district exchange utilized sales offices and infrastructure provided by the central exchange. The central exchange unified the cooperative with research and guidance for the local and district exchanges.[ citation needed ] It featured departments such as the treasury department which ensured proper accounting and the advertising department which created advertising materials, managed public relations, and encouraged nutritional research. Additionally, the central exchange fostered scientific research on citrus through its field department and collaborations with the University of California and USDA's Citrus Experiment Station in Riverside. [6] [7] [8]

Since its inception, the organization has significantly expanded its activities. In 1906, the CFGE launched the Citrus Protective League, a lobbying arm. [9] In 1907, it formed the Fruit Growers Supply Company to provide growers with materials such as radios, tires, shooks (components for fruit crates), insecticides, and fertilizers at wholesale prices. [10] It later formed the Sunkist's Exchange By-Products Company, which developed markets for by-products such as citric acid, sodium citrate, lemon oil, pectin, orange oil and orange pulp. [5] [11]

The Sunkist brand

Fruit crate label for Sunkist California Oranges Sunkist Californian Oranges ol344.jpg
Fruit crate label for Sunkist California Oranges

In its early years, the primary problem facing the California citrus industry was an oversupply of fruit. By 1907, California was producing five times as many oranges as fifteen years earlier. Orange production continued to grow as newly planted orange groves began to bear fruit. In response, in 1907 the CFGE approved the first-ever large-scale advertising campaign aimed at marketing a perishable commodity. The March 1907 campaign, promoting oranges to Iowans as "healthy" and "summery" resulted in a 50% increase in orange sales in that state. It also launched the Sunkist brand: the ad agency Lord & Thomas originally proposed using the adjective "sun-kissed" to describe the CFGE oranges; the word eventually used in the campaign was Sunkist, created by the agency as a mnenomic device which would be easier to defend if used as a trademark. [3]

In an effort to distinguish Sunkist oranges from others, the CFGE wrapped its oranges in paper stamped with the Sunkist brand name. In 1909, after Sunkist learned that merchants were selling non-Sunkist oranges as Sunkist, it began to offer consumers a free Sunkist-branded spoon in exchange for mailing in twelve Sunkist wrappers. One million spoons were claimed in the first year of the promotion, further establishing the brand in consumers' minds and giving merchants a reason to want to display Sunkist oranges in their original wrappers. By 1910, because of the promotion, Sunkist had become the world's largest purchaser of cutlery. [3]

The success of early campaigns prompted Sunkist to invest heavily in advertising, and in coming decades the brand was advertised in magazines and on radio, on billboards, streetcars and railroad cars, on the sides of speedboats, in school curricula and essay contests, and in pamphlets distributed in doctors' offices. Its messaging was aimed to reposition oranges in the minds of consumers. Rather than a luxury to be enjoyed only at Christmas, Sunkist wanted people to believe oranges were essential for good health and to eat one every day. [5]

A 1928 ad featuring Santa Claus Santa Claus - Sunkist Ad (1928).jpg
A 1928 ad featuring Santa Claus

Sunkist also invested in marketing fresh-squeezed orange juice and lemonade as superior alternatives to "artificial" beverages such as Coca-Cola. By the mid-1930s, one Sunkist orange in five was being consumed in juice form, often at soda fountains, and Sunkist juice was the second-most-popular soda fountain drink, after Coca-Cola. [5]

By 1914, Americans were consuming about forty oranges per person every year, up 80% from 1885. [3]

In 1915, in response to competition from imported Italian lemons, which at that time had nearly half the American market, Sunkist started aggressively marketing the benefits of Sunkist lemons, promoting their use as a hair rinse, in tea, in pie and as a food garnish. By 1924, California lemons had 90% of the American lemon market. [3]

Today

In 2023, Sunkist celebrated its 130th anniversary as the "...longest standing agricultural co-op in the US" on "Sunkist Citrus Day" on 1 March 2023 commending its over 1,500 members (many small family farmers) and the more than 40 citrus products in its offering. [12]

As of 2007, Sunkist markets fresh oranges, lemons, limes, grapefruits, and tangerines to 12 states and three Canadian provinces, from 6,000 growers in California and Arizona. From 1971 to 2014, Sunkist was based in the Sherman Oaks district of Los Angeles; in September 2014, it relocated to the Valencia neighborhood of Santa Clarita. [1] Through trademark agreements, Sunkist has licensed its trademark to other firms such as General Mills and Snapple, for marketing more than 600 mainly citrus-flavored products including soft drinks and juice drinks, vitamins, and jellies and candies in more than 50 countries. Sunkist also owns two citrus processing plants which manufacture juice, oils, pulp and peels. Sunkist's subsidiaries for marketing, international sales and fruit purchasing include SunMac Hawaii Ltd., Sunkist Global, LLC in California, Sunkist Pacific, Ltd., in Japan, Sunkist (Far East) Promotion Ltd., in Hong Kong, and Sunkist Real Estate Ltd., in California. [13] Sales in 1991 totalled $956 million, [2] with nearly half of revenues generated outside the United States. [13]

Examples of Sunkist trademark licensing

See also

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References

  1. 1 2 Wilcox, Gregory (August 18, 2014). "Sunkist leaving San Fernando Valley after four decades". Los Angeles Daily News. MediaNews Group. Retrieved September 14, 2014.
  2. 1 2 Schoenbrod, David (1995). Power Without Responsibility: How Congress Abuses the People Through Delegation. Yale University Press. p. 6. ISBN   0-300-06518-3.
  3. 1 2 3 4 5 6 Cruikshank, Jeffrey L.; Schultz, Arthur W. (2010). The Man Who Sold America: The Amazing (but True!) Story of Albert D. Lasker and the Creation of the Advertising Century. Harvard Business Review Press. pp.  114-119. ISBN   978-1-59139-308-5.
  4. ↑ Tobey, Ronald; Wetherell, Charles (1995). "The Citrus Industry and the Revolution of Corporate Capitalism in Southern California, 1887-1944". California History. 74 (1): 6–21. doi:10.2307/25177466. JSTOR   25177466.
  5. 1 2 3 4 Sackman, Douglas Cazaux (2005). Orange Empire: California and the Fruits of Eden. University of California Press. pp. 93–101. ISBN   0-520-23886-9.
  6. ↑ Cumberland, William Wilson (1917). Cooperative Marketing: Its Advantages as Exemplified in the California Fruit Growers Exchange. Princeton University Press.
  7. ↑ Gardner, Kelsey Beeler; McKay, Andrew William (1950). The California Fruit Growers Exchange System. US Government Printing Office.
  8. ↑ Jacobs, James A. (1994). Cooperatives in the US citrus industry. USDA Rural Business and Cooperative Development Service Research Report 137.
  9. ↑ American Tariff League (1908). The Tariff review, Volumes 41-42. American Economist. p. 180.
  10. ↑ Nelson, Ted (2006). "Citrus Fruit & Forests: The Story of California's Fruit Growers Supply Company" (PDF). Forest History Today: 24–28.
  11. ↑ McWilliams, Carey (1980). Southern California: An Island on the Land . Peregrine Smith. p.  211. ISBN   0-87905-007-1.
  12. ↑ Collen, Carl (February 21, 2023). "Sunkist celebrates 130th anniversary". Fruitnet. Retrieved January 10, 2024.
  13. 1 2 Plunkett, Jack W. (2007). Plunkett's Food Industry Almanac 2007: Food Industries Market Research, Statistics, Trends & Leading Companies. Plunkett Research. ISBN   978-1-59392-068-5.
  14. ↑ "Welcome To". Sunkistcandy.com. Retrieved June 2, 2014.
  15. ↑ "Jelly Belly to Buy Ben Myerson Candy Business". progressivegrocer.com. October 18, 2006. Retrieved July 26, 2023.
  16. ↑ "Home". Sunkist. Retrieved December 2, 2018.
  17. ↑ Archived December 30, 2006, at the Wayback Machine
  18. ↑ "Soft Drinks, Fruit Snacks, Fruit Gems - Worldwide Licensed Products from". Sunkist. Archived from the original on December 8, 2008. Retrieved June 2, 2014.
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