Northland Cranberries today reported a significant drop in third quarter net income to $1.235 million, compared to $1.9 million for the previous year's period.
Revenues were down to $22.6 million from last year's net revenues of $24.2 million, although decreases in branded juice sales and co-packing revenue were partially offset by increased cranberry concentrate sales, reported the firm.
The company claims that sales in the entire shelf-stable cranberry juice category have decreased by around 4 per cent from May 2002 to May 2003 but that Northland's brand has maintained its market share. The company has previously suffered from heavy price and promotional discounting by major competitors such as Ocean Spray. Both companies have been struggling with depressed cranberry prices resulting from an industry-wide surplus of fruit for some time.
But John Swendrowski, Northland's chairman and chief executive officer, highlighted distribution gains achieved during the quarter and debt reduction worth more than $14.0 million, as factors likely to boost the firm's performance in coming months.
The company has also announced its first national radio advertising campaign to be launched this summer.