Florida’s Natural® and the supply of Florida oranges

Carlos Omar Trejo-Pech; Thomas H. Spreen; Lisa A. House

doi:10.22434/IFAMR2017.0041

Florida’s Natural® and the supply of Florida oranges

Journal

International Food and Agribusiness Management Review

ISSN

1559-2448

Date Issued

2018

Author(s)

Carlos Omar Trejo-Pech

Facultad de Ciencias Económicas y Empresariales - CampGDL

Thomas H. Spreen

Lisa A. House

Type

text::journal::journal article

DOI

10.22434/IFAMR2017.0041

URL

https://scripta.up.edu.mx/handle/20.500.12552/3558

Abstract

This case study provides a thorough description of the U.S. orange juice industry, and focuses on Florida’s Natural, a cooperative of citrus growers and owner of the Florida’s Natural® brand. Florida’s Natural® competes mainly with Tropicana, owned by PepsiCo, and with Minute Maid and Simply Orange, brands of The Coca-Cola Company. The objective of the case is to evaluate the orange juice industry, assess the position of Florida’s Natural within the industry, and propose business actions for the cooperative. By the end of 2016, the orange juice industry was in the midst of a severe crisis, threatened by decreasing supply and changing consumption preferences. Total orange production in the State of Florida during the 2015-16 season was the smallest crop since the 1960s due mainly to a disease known as citrus greening. Marketers were also facing consumers’ concerns regarding high levels of calories and sugar in some juice categories. Furthermore, on May 2016, the Food and Drug Administration mandated a change in the nutrition facts label on packaged food, becoming effective in the summer of 2018, which may impact marketers in the sector.