Remaining Relevant
April 1, 2009 
From Sectionalizing To Nationalizing
A small group of Florida citrus growers led by Hunt Bros., Waverly Citrus Growers Association, and Winter Haven Citrus Growers Association started the Florida Citrus Canners Cooperative in 1933 to maximize their fruit sales. Too many blemished grapefruits were ending up in cattle pastures, and the growers needed a better home for fruit that was good on the inside, but didn’t look perfect on the outside. The solution? Sectionalized, canned grapefruit. But they couldn’t do it alone, so six organizations came together to combine their resources, brainpower, and money.
In the first year of operation, they sold 42,000 cases of canned grapefruit sections. As Florida’s citrus industry developed, the cooperative introduced many new products — canned grapefruit juice, FCOJ, chilled citrus sections, NFC, etc. — and underwent two name changes (Citrus World Inc. in 1969 and Florida’s Natural Growers in 1998).
In 1989, Florida’s Natural was the first to introduce NFC ruby red grapefruit, and in 1998 it was the first brand to include calcium and vitamin C in NFC ruby red grapefruit juice. In 1990, Florida’s Natural was the first brand to use the pour spout on an NFC carton, preserving freshness and providing convenience
for consumers.
Today, the cooperative is comprised of 12 grower organizations producing 40 million cases of juice products annually that are sold throughout the U.S. and in more than 60 countries around the world. A grower-member from each of the 12 organizations sits on the Florida’s Natural Growers (FNG) board of directors, and a seven-member management team oversees daily operations. To ensure supply levels remain at the right levels for maximum grower returns, membership in FNG is currently closed.
Profitable Products
The cooperative’s goals are similar to the founding purposes, says Walt Lincer, VP of sales and marketing for FNG since 1992.
“Our stockholders are the growers, so members are the decision makers that control the sale of their final products rather than being at the mercy of a corporation buying product as cheaply as it can,” says Lincer, “We’re trying to sell the product at a price where our members can make a profit.”
At its 75th annual stockholders meeting in November 2008, FNG reported one of the highest orange returns in the cooperative’s history, despite an extremely challenging economic environment.
“When considering the fruit returns and the growth to member equity, it is no exaggeration to say that 2007 and 2008 have been the best back-to-back seasons in the history of Florida’s Natural Growers,” says FNG president and chairman of the board Dick Fort.
“Overall sales grew 2%, and Florida’s Natural brand slightly outperformed the NFC category,” says Lincer. “Both net and gross sales set all-time records.”
Powerful Promotion
Successful marketing strategies contributing to the sales increase include television ads, the FNG website (www.floridasnatural.com), and Internet banner ads on everything from Yahoo! to cooking websites. The Grove House Visitor Center also serves as an effective means to promote the Florida’s Natural brand.
A significant part of FNG’s advertising efforts can be seen on television. The ads, many of which feature the passing of an OJ carton from the grove to the grocery store and “Grower Dave” (L. Davis Crumbly, who serves as FNG’s vice president of agricultural services), emphasize the direct link from grower to consumer. Marketing messages are focused on the fact that Florida’s Natural is the only national OJ brand made exclusively from Florida oranges.
“The growers are at the heart of the Florida’s Natural brand story,” says Lincer. “The growers’ dedication to the state and entrepreneurial spirit throughout generations is the best and most authentic way to exhibit our values and who we are as a grower-owned cooperative.”
Visitors to the site can read the colorful stories of growers like Anita Simpson, who with the help of loyal employees kept her grove running after her husband’s passing, or Leland and Wanda Young, married for 55 years and the proud owners of a barn known as the “party place of all Polk County.”
Concentration On Conservation
Attention to the environment is nothing new at FNG, but the cooperative does have a renewed focus on sustainability. Continued efforts to reduce the use of energy, packaging material, and water are a cooperative-wide commitment.
From 2000 to 2007, FNG’s natural gas consumption is down approximately 25%, and electrical consumption is down about 9%. Water usage is down more than 90% since the early 1980s, due to the implementation of recirculation programs and the installation of cooling towers. The cooperative’s co-generators enable FNG to generate 75% of its off-season load and all of its internal steam needs. The system burns clean natural gas to generate both electricity and steam.
“All departments have been charged with using less materials and energy,” says Lincer.
Trucks that used to haul 40,000 pounds of product are now carrying maximum loads of 44,000 pounds, thanks to lighter containers and reduced corrugated materials. New packaging improvements use 10% to 15% less material than older containers.
“We’re in the process of rolling out new consumer-friendly packaging called the crystal clear pitcher,” says Lincer. “It’s an 89-ounce OJ container now in use in the Eastern U.S. that should be available nationwide by this summer.”
Promising Future
What’s next for FNG?
“We have a 100%-juice product people love with great taste and health benefits,” says Crumbly. “There will always be a strong market for our product. The cooperative will continue to be a grower advocate.”
“There is a lot of entrepreneurial and innovative spirit amongst our members and management team,” says Lincer. “We’ve been here longer than other national brands, and juice is our only business. We are not in the soda pop business. I think our sales will be much higher, and our brand will continue to grow. Even though there are a lot of challenges in our industry, we’re pretty bullish about our future.”
Grower Dave On Greening
Dave Crumbly, vice president of agricultural services for Florida’s Natural Growers, says all of the cooperative’s members have been affected by citrus greening.
“It’s not really noticeable on production at this point. Losses are pretty small, thanks to aggressive scouting and tree removal. We are concerned about it, but confident ongoing research efforts will allow us to live with it and then eventually to eliminate it. We need to be diligent in reducing the spread. Some members are beginning to look at the possibility of high-density growing practices.”
Citrus In The Spotlight
The Grove House Visitor Center in Lake Wales is a gift shop and museum that opened in 2001 to promote the Florida’s Natural brand and educate consumers about the state’s citrus industry. It includes a movie theater, educational displays on citrus history, processing, packaging, and more.
In 2007, solar panels were installed on the grove house as a demonstration of the cooperative’s commitment to renewable energy and as a test to explore other potential sources of energy. The solar panels are estimated to supply 30% of the power needs of the 5,000-square-foot facility.
New to the Grove House is Ray Holland’s one-of-a-kind collection of souvenir citrus china. Especially popular in the 1940s, the china was designed for wealthy northerners who’d winter in Florida and wanted to take home gifts from the Sunshine State.
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