Florida's Natural profit shares hit a record

LAKE WALES – Florida’s Natural Growers saw a 1.3 percent increase in sales revenue for the 2017-18 Florida citrus season, following two consecutive years of decreases, and set a record high for profits shared with its grower-members.

Citrus World Inc., parent company of the Lake Wales citrus juice processor, reported total sales revenue of $438.7 million for the season ending Sept. 30, an increase of $5.7 million from the 2016-17 season, according to the company’s annual report.

Citrus World is the third largest retailer of orange juice products in the U.S. Most of its sales revenue comes from its Florida’s Natural brand of chilled, not-from-concentrate orange and grapefruit juices and lemonades.

Citrus World is a cooperative of 14 grower organizations, including Ben Hill Griffin Inc. in Frostproof, Tampa-based Lykes Bros. and the Dundee and Haines City citrus growers association with a combined membership of about 1,000 growers. The cooperative pays growers a share of its profits based on the number of boxes each contributes.

Those profit shares, or “returns,” hit records in the 2017-18 season, Chief Financial Officer Chip Hendry said in a company statement following its Monday annual meeting.

Florida’s Natural paid members an average $2.49 per pound solids for early and mid-season oranges, harvested October to March, and $2.81 per pound solids for late-season Valencia oranges, Hendry reported. Grapefruit growers saw an average return of $3.25 per pound, up 90 cents from the previous season.

Those returns are consistent with Florida citrus industry averages, said Marisa Zansler, the chief economist for the Florida Department of Citrus in Bartow. Precise 2017-18 industry averages won’t be known for several months.

The sales revenue increase came mostly from an overall rise in product prices, also consistent with the Florida citrus industry, said Chris Groom, the cooperative’s marketing officer.

But Florida’s Natural outperformed its competitors in terms of holding its share of the U.S. market for orange and grapefruit juices and lemonades, he added.

Florida’s Natural saw OJ sales by the gallon decline by 0.3 percent in 2017-18, Groom said, but the industry average OJ volume sales fell by 1.2 percent.

“We competed well in a challenging environment where overall juice consumption declined,” he said.

Overall, Florida’s Natural held its own in the share of the domestic OJ market, saw a slight decline in its grapefruit market share but had an increase in the share of the U.S. lemonade market, Groom said.

Also helping revenue was the cooperative’s co-packaging operations for other products, notably AriZona iced teas and beverages, he added. Under a licensing agreement with AriZona, Florida’s Natural earns a share of sales for its chilled beverage products.

Florida’s Natural hopes to keep that momentum going with the introduction of three new light products in the 2018-19 season, he said. That includes two OJ products with reduced calories and sugar and a similar lemonade product.

“We’re excited to deliver record returns while we held our market share and delivered growth in our lemonades and teas,” Groom said.

The Florida’s Natural board of directors elected Frank M. Hunt III as its new president and chairman, succeeding Dennis Broadaway, who is retiring. His father, Frank Hunt II, served in the same post for 30 years until 2003, when he retired.

Kevin Bouffard can be reached at kevin.bouffard@theledger.com or at 863-802-7591.