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More tart words for cranberry product

By Matt Carroll
Globe Staff / December 6, 2009

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Two cranberry manufacturers have added their voice to a consumer group’s complaints that an Ocean Spray Cranberries Inc. product used in trail mix and cereal bars should be relabeled because it does not use enough of the bright red fruit.

Representatives from Decas Cranberry Products Inc. of Carver and Atoka Cranberries Inc. of Canada complained that the Lakeville-based Ocean Spray cooperative should relabel one of its products to reflect how little cranberry is allegedly used.

Jeff Carlson, the president and chief executive officer of Decas, said the Ocean Spray product, called Choice, helps undermine cranberry prices in a market that is already hurting and could damage the image of cranberries in the minds of consumers who buy it for its touted health benefits.

J.F. Bieler, the general manager of Atoka, agreed, adding, “The cranberry content [of Choice] is close to nothing,’’ other than skin. Labeling it a “cranberry-flavored fruit piece would be closer to reality,’’ he said.

Ocean Spray officials lashed back, saying the attack on their product has nothing to do with either pricing or health benefits, but is instead about a patent lawsuit the company filed against Decas in 2008.

Ocean Spray said in the suit, filed in Boston US District Court, that Decas has violated patents used to process cranberries in a more efficient manner. The case is proceeding.

“Folks like Decas are frustrated trying to compete with our technology and patent,’’ said Mike Stamatakos, group vice president of supply and development for Ocean Spray. “We are suspicious of their motives.’’

There is no need to change labels, said company officials. Ocean Spray follows the letter - and the spirit - of the FDA labeling regulations, they said.

The National Consumers League, a nonprofit, last month asked the US Food and Drug Administration to investigate the labeling of Ocean Spray’s Choice brand. The group said the product is sold as a “sweetened dried cranberry,’’ but is actually made from cranberry skins and not whole cranberries. No reply is expected from the federal govern ment for months.

The consumer group based its findings on a report, commissioned by the group, that found the Choice brand is cranberry skin mixed with sugar syrup, inverted beet sugar, and citric acid. The group said it commissioned the report after receiving a tip from a confidential whistle-blower.

The dispute is over a somewhat arcane, if popular, product. Choice is a type of cranberry called “sweetened dried,’’ which encompasses a variety of products. Choice is not sold to consumers directly, but is used by companies in such foods as cereal bars and trail mixes.

It’s typically used by a food manufacturer that wants a cranberry that’s a brighter red and a little sweeter. Ocean Spray adds a small amount of elderberry juice to make it redder and removes some acidity, leaving it sweeter, said Stamatakos.

Choice is a small part of the company’s revenues, perhaps $20 million to $30 million out of $2 billion in sales, the bulk of which is in juices, according to the company.

Ocean Spray makes between 25 and 30 cranberry products, often working directly with manufacturers to come up with a specific item.

If this were a boxing match, it would be a dispute between a heavyweight and lightweight. In the relatively small agricultural world of cranberries, Ocean Spray is a giant.

Ocean Spray is a cooperative made up of more than 700 growers, and controls just under 60 percent of the supply of the hard, red fruit, according to the company. By comparison, Decas has about 7 percent of the market, according to Carlson.

Carlson said Choice uses too little of the cranberry to be labeled as if it were a regular cranberry product. It’s hurt the market for sweetened dried cranberries because Ocean Spray markets Choice aggressively in a weak market, he said.

“They sell and advertise it as a dried cranberry but it is very different than what consumers think they are getting,’’ he said. Carlson said he has not filed a complaint on his own, or called the consumer group to offer support.

For their part, Ocean Spray officials say the cranberry claim is an attempt to deflect attention from its patent suit against Decas.

Ocean Spray said in its suit that it became suspicious in 2006 that several competitors were using its patented cranberry process to manufacture sweetened dried cranberries. It filed suit against a Michigan manufacturer, settled the case, and the company now pays royalties to Ocean Spray.

Matt Carroll can be reached at mcarroll@globe.com.

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