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Innovation a necessity, not a choice, for 21st century co-ops.(Company Profile)

Publication: Rural Cooperatives
Publication Date: 01-MAY-05
Format: Online
Delivery: Immediate Online Access

Article Excerpt
Most of the business innovation occurring today is in response to market pressure, according to Chris Peterson, a professor at Michigan State University. Co-ops, like their competitors, are being "forced" to innovate. In order to remain competitive, Peterson warns, co-ops should be...

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...implementing innovative ideas constantly. Florida's Nat-ural Growers is one cooperative that has clearly heeded this counsel.

Citrus co-op competes with beverage giants

About 1950, the chairman of Florida's Natural said: "It is most discouraging to do everything possible to maintain prices that will bring decent returns to our growers and then have these prices made meaningless by ruthless cuts of competitors." If anything, this situation is even more acute today.

Florida's Natural is pitted against the two biggest names in orange juice: Tropicana, owned by Pepsi, and Minute Maid, owned by Coca-Cola. As a result, the co-op faces continuous cut-throat competition while trying to maintain a high return for its members. According to Walter Lincer, vice president of sales and marketing at Florida's Natural, this is nothing new. As manufacturers of a retail product, Florida's Natural has always faced a challenging environment.

Florida's Natural has constantly revised and adapted its marketing strategy in an attempt to...

NOTE: All illustrations and photos have been removed from this article.



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