Ocean Spray has reported very strong participation in its first online auction of cranberry concentrate, held today, July 22. Out of the 37 buyers that had previously registered, 34 participated in today’s auction. Through the streamlined process, Ocean Spray sold a total of 230,000 gallons of its concentrate at a clearing price of $33 per gallon for the first contract delivery period (6 months following the auction) and $34 per gallon for the second contract delivery period (the subsequent 6 months).
Open to qualified buyers worldwide, Ocean Spray established the auction to sell its concentrate to all participants on a level playing field. Winning bidders now have the guarantee of their specified volume of concentrate supplied at the price determined in the auction.
Michael Stamatakos, Vice President, Agricultural Supply and Development at Ocean Spray said: “We are pleased with the outcome of this first auction. We believe the auction is a trusted and reliable method of facilitating commodity sales that will allow Ocean Spray to continue to deliver quality cranberry concentrate through an open and efficient process.”
Consulting firm CRA International developed the online trading system and served as the Trading Manager for the auction process. Bidders were able to track availability and pricing of the concentrate, making for a transparent approach.
The date of the next cranberry auction will be announced on www.cranberryauction.info in coming weeks.