[December 07, 2008]

Raisin payouts a little sweeter: Sun-Maid reports sales in 2007 topped $300 million for first time ever.

(Fresno Bee (CA) Via Acquire Media NewsEdge) Dec. 7--The Sun-Maid Growers cooperative in 2007 topped $300 million in sales for the first time, and its 800 members are getting a little extra money in their stockings this year.

Growers who attended the annual meeting Saturday in Fresno learned they will receive between $1,390 and $1,400 per ton for the 2007 crop. That was a little higher than the $1,345 the 2006 harvest netted.

Whether that carries over into this year remains to be seen. Jon Marthedal, chairman of Sun-Maid's board of directors, said the 2008 crop faced challenges.

"We experienced significant cost increases in virtually all aspects of production," he said, referring to a hike in the minimum wage, and higher fuel and chemical prices.

He even noted an increase in metal thefts, which became almost a daily occurrence.

"I'm sure most of us here today experienced at least one electrical panel being stripped of its copper wire," Marthedal said. "While the stolen wire was sold at record-high prices to recyclers, the value was only a fraction of the cost of repairing the damage and replacing the electrical service."

The 2008 crop also has a lower-than-ideal sugar content, which could affect its quality.

Marthedal said a smaller foreign harvest and the weak dollar boosted exports last year. They were 40,000 tons higher than the average over the last four years, and that extra business helped push sales to almost $312 million, up from the previous record of $295 million set in 2006.

The cooperative in Kingsburg shipped raisins to 56 countries, including Denmark. That country has only 5 million people but is the second-largest consumer of Sun-Maid products per capita -- behind Norway and ahead of the United States, which is among the top 10.

Finn Houengaard, managing director of the company that distributes Sun-Maid in Denmark, traveled to Fresno to speak to the growers. He showed a short slide presentation of life in Denmark and then talked about how Sun-Maid is one of the most recognized brands in the European nation.

Danes eat raisins from the box or put them in cereal, salads and bread. They are used in back-to-school and movie promotions and placed in a variety of spots in the same store, such as in produce sections and cereal aisles. Sun-Maid gets a prominent spot on Danish store shelves, conducts taste tests and makes strong use of the California connection, Houengaard said.

The cooperative has less success in other areas. Sun-Maid President Barry F. Kriebel said the company can do more to promote the nutritional aspects of raisins, even though it was able to negotiate the use of Fitness magazine's logo on its boxes and got Woman's Day magazine to rate its mini-snack raisins as among the top 50 snacks. Men's Health magazine also cited the energy-boosting, antioxidant and fiber benefits of raisins.

But more can be done. The new U.S. farm bill passed this year excluded raisins and other dried fruit from a new and expanding program designed to improve eating habits. And regulators in England banned raisins from advertisements targeting children because they think the natural sugar content is too high.

"They need to wake up and realize that raisins are just grapes and sunshine -- with the water removed," Kriebel said.

The reporter can be reached at snax@fresnobee.com or (559) 441-6495.

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