Moves on both coasts strengthen Seald Sweet's position
Moves on both coasts strengthen Seald Sweet's position
Seald Sweet LLC recently announced partnership deals in Florida and California that strengthen the Vero Beach, FL- based company's position as a year-round supplier of high- quality citrus.
In Florida, Seald Sweet concluded a joint venture acquisition and operating agreement with SunBrite Citrus Inc. in Fort Pierce, FL, which is one of its grower-shipper members. Under the agreement, reached Oct. 19, Seald Sweet becomes a 50 percent owner of a newly formed company SunBrite Holdings LLC, with the Schirard family retaining the other half of the company.
According to Seald Sweet Senior Vice President Mayda Sotomayor, Seald Sweet was looking to bolster its physical presence in Florida, and the deal with SunBrite gives it the opportunity to have control of a state-of-the-art packing facility and grove land, allowing it to be a more vertically integrated company.
"This partnership with SunBrite is a strategic fit for internal Florida growth and provides a timely opportunity for inter-company consolidation," Hein Deprez, Seald Sweet president, chief executive officer and majority owner, said in a statement. "Seald Sweet's Florida citrus heritage is certainly a major component of our company's commitment to a fully globally integrated citrus and produce marketing company."
"With all the tremendous challenges and changes facing the Florida citrus industry, consolidation and member companies working together are going to be necessity rather than option," Brantley Schirard, president and majority owner of SunBrite, added in the statement.
"In an effort to protect and grow Seald Sweet's marketing position, the joint venture worked out with SunBrite is a forward step in our plan," said David Mixon, senior vice president of Seald Sweet. "The Schirard family, with their long past history of Indian River District grower-based operations, is an excellent fit, and the new company, SunBrite Holdings LLC, its structure and options within the agreement provide for integrated ownership of both excellent packing facilities, and grove ownership participation."
In California, Seald Sweet has established a marketing partnership with Fillmore-Piru Citrus Association based in Piru, CA, which has about 70 growers and 3,000 acres of production.
Ms. Sotomayor said that the partnership with F-P is a very good match because both F-P and Seald Sweet are in a time of growth and change, and both companies have a lot of common ground and common goals for the future.
Ms. Sotomayor referred to the California citrus industry as "fragmented," which presented some challenges for F-P. "Fillmore-Piru is a co-op of high standards, and we want to help them achieve positive growth," while also capitalizing on the organization's strategic location in California that will strengthen Seald Sweet's standing with both California product and imported product.
"It is the perfect location [for consolidation of product]," said Ms. Sotomayor.
Brian Edmonds, vice president of Fillmore-Piru, said that of the association's 108 years in business, 106 were spent as a grower for Sunkist Growers, based in Sherman Oaks, CA, and one year was spent with Fort Pierce, FL-based DNE World Fruit Sales. The agreement with Seald Sweet, which was signed in late October, is a one-year pact which will be re-evaluated after that term.
"We are [anticipating] a long-term deal with Seald Sweet," said Mr. Edmonds. "Seald Sweet is also a long-time co-op, and we share a lot of the same experiences and struggles, so I feel that we complement each other well."
Of the decision to partner with Seald Sweet, Mr. Edmonds said that increased competition in the citrus industry was a driving force, and that the agreement will help his organization maintain a viable year-round program. "We're strong on the West Coast, and [Seald Sweet] is strong on the East Coast and with imports," he said.
Mr. Edmonds classified the agreement as an "affiliation," with Seald Sweet receiving no ownership interest in Fillmore-Piru. He said that the association will continue to run its packing and shipping operations. It ships approximately 1.2 million cartons of Valencias, Navels and lemons annually under the "Belle of Piru," "Titan," "Glider," "Ring Leader" and "Seald Sweet" labels. The facility has subsidiary F&P Cooling, which cools and ships a range of produce along with repacking and logistics for imports to the West Coast.
For Seald Sweet, these two partnership deals follow a marketing agreement formed last spring with Edinburg, TX- based Edinburg Citrus Exchange and the mid-summer creation of Seald Sweet's California-based subsidiary, Seald Sweet West International Inc., which is located in Visalia, CA. According to Ms. Sotomayor, all the moves have come in response to demands from Seald Sweet's customers, who wanted the company to provide year-round offerings and become more vertically integrated, with more overall control of product from the groves to the marketing.
"We are striving to become a more market-driven company than ever before," she said. "We must be adaptable to change and constantly add value for our customers."
In Florida, Seald Sweet concluded a joint venture acquisition and operating agreement with SunBrite Citrus Inc. in Fort Pierce, FL, which is one of its grower-shipper members. Under the agreement, reached Oct. 19, Seald Sweet becomes a 50 percent owner of a newly formed company SunBrite Holdings LLC, with the Schirard family retaining the other half of the company.
According to Seald Sweet Senior Vice President Mayda Sotomayor, Seald Sweet was looking to bolster its physical presence in Florida, and the deal with SunBrite gives it the opportunity to have control of a state-of-the-art packing facility and grove land, allowing it to be a more vertically integrated company.
"This partnership with SunBrite is a strategic fit for internal Florida growth and provides a timely opportunity for inter-company consolidation," Hein Deprez, Seald Sweet president, chief executive officer and majority owner, said in a statement. "Seald Sweet's Florida citrus heritage is certainly a major component of our company's commitment to a fully globally integrated citrus and produce marketing company."
"With all the tremendous challenges and changes facing the Florida citrus industry, consolidation and member companies working together are going to be necessity rather than option," Brantley Schirard, president and majority owner of SunBrite, added in the statement.
"In an effort to protect and grow Seald Sweet's marketing position, the joint venture worked out with SunBrite is a forward step in our plan," said David Mixon, senior vice president of Seald Sweet. "The Schirard family, with their long past history of Indian River District grower-based operations, is an excellent fit, and the new company, SunBrite Holdings LLC, its structure and options within the agreement provide for integrated ownership of both excellent packing facilities, and grove ownership participation."
In California, Seald Sweet has established a marketing partnership with Fillmore-Piru Citrus Association based in Piru, CA, which has about 70 growers and 3,000 acres of production.
Ms. Sotomayor said that the partnership with F-P is a very good match because both F-P and Seald Sweet are in a time of growth and change, and both companies have a lot of common ground and common goals for the future.
Ms. Sotomayor referred to the California citrus industry as "fragmented," which presented some challenges for F-P. "Fillmore-Piru is a co-op of high standards, and we want to help them achieve positive growth," while also capitalizing on the organization's strategic location in California that will strengthen Seald Sweet's standing with both California product and imported product.
"It is the perfect location [for consolidation of product]," said Ms. Sotomayor.
Brian Edmonds, vice president of Fillmore-Piru, said that of the association's 108 years in business, 106 were spent as a grower for Sunkist Growers, based in Sherman Oaks, CA, and one year was spent with Fort Pierce, FL-based DNE World Fruit Sales. The agreement with Seald Sweet, which was signed in late October, is a one-year pact which will be re-evaluated after that term.
"We are [anticipating] a long-term deal with Seald Sweet," said Mr. Edmonds. "Seald Sweet is also a long-time co-op, and we share a lot of the same experiences and struggles, so I feel that we complement each other well."
Of the decision to partner with Seald Sweet, Mr. Edmonds said that increased competition in the citrus industry was a driving force, and that the agreement will help his organization maintain a viable year-round program. "We're strong on the West Coast, and [Seald Sweet] is strong on the East Coast and with imports," he said.
Mr. Edmonds classified the agreement as an "affiliation," with Seald Sweet receiving no ownership interest in Fillmore-Piru. He said that the association will continue to run its packing and shipping operations. It ships approximately 1.2 million cartons of Valencias, Navels and lemons annually under the "Belle of Piru," "Titan," "Glider," "Ring Leader" and "Seald Sweet" labels. The facility has subsidiary F&P Cooling, which cools and ships a range of produce along with repacking and logistics for imports to the West Coast.
For Seald Sweet, these two partnership deals follow a marketing agreement formed last spring with Edinburg, TX- based Edinburg Citrus Exchange and the mid-summer creation of Seald Sweet's California-based subsidiary, Seald Sweet West International Inc., which is located in Visalia, CA. According to Ms. Sotomayor, all the moves have come in response to demands from Seald Sweet's customers, who wanted the company to provide year-round offerings and become more vertically integrated, with more overall control of product from the groves to the marketing.
"We are striving to become a more market-driven company than ever before," she said. "We must be adaptable to change and constantly add value for our customers."
