Sales Woes Endanger Arnold's $35 Mil. Task
BOSTON-Under increasing pressure to cut costs, executives at Ocean Spray Cranberries are considering a review of its $35 million account, now handled by Arnold Communications, said sources.
The Lakeville, Mass.-based client last month announced its third round of layoffs, bringing to 550 the number of jobs cut companywide in the past two years as a result of a glut in cranberries and decreased consumption of its trademark juice.
In addition, last year's launch of its Wellfleet Farms blended juice line, with commercials sporting the "We only pick the best fruit" tagline, has been disappointing, according to sources.
The cooperative, which consists of about 950 cranberry and grapefruit growers in the U.S. and Canada, is the nation's largest fruit juice seller, with $1.48 billion in sales last year. But a two-year market surplus has forced prices downward, spurring cost reductions and cutbacks.
"We have had a workforce reduction and sometimes reviewing agencies is an obvious deducement, but we have no plans for an agency review at this time," said Marguerite Copel, director of corporate communications at Ocean Spray.
Just last month, Arnold was said to be in development on new work for Ocean Spray that would replace the "Best fruits" campaign when its director of brand development, Lynn Rotando, left to join Pile and Co., the Boston-based consulting firm that specializes in agency reviews. At that time, Rotando, who continues to consult to Ocean Spray, said there was no plan to review. He could not be reached for comment on Friday. ƒ