Sun-Rype
Encyclopedia
Sun-Rype Products Ltd. is western Canada’s
largest fruit-based food and beverage
manufacturer. Since its foundation in 1946, Sun-Rype has been producing juices and fruit snacks in Kelowna
, British Columbia
, in the heart of the Okanagan
.
In 2003, Sun-Rype was named as the 9th fastest growing company in British Columbia by The Vancouver Sun
.
In 1963, Sun-Rype teamed up with the Fraser Valley Milk Producers Association to distribute juice cartons on Vancouver
milk routes. In 1979, it became the first juice manufacturing company in Canada to provide tetra packaging
for its 250 ml and 1 L
juice packs. Also, in 1992, it developed the 6 L
bag in a box
package.
In 1996, Sun-Rype celebrated its 50th year in business. In recognition of this milestone, mayor Jim Stuart of the City of Kelowna
honored Sun-Rype by declaring May 13, 1996 "Sun-Rype Day".
with Shanghai Jinqiao EPZ Scientific Development Co. Ltd. to produce and sell its juices in the Asian country. With a plant located in the Jinqiao Export Processing Zone in Pudong
, Sun-Rype invested 65% of the $13 million project cost and anticipated to be selling its juices by the end of 1995.
This expansion plan almost immediately started to falter, and in 1997, Sun-Rype was forced to create a new joint venture with Lion Group
, a Malaysian conglomerate
. With this deal in place, Sun-Rype received land, equipment, and future working capital, while Lion Group took over ownership of the Asian subsidiary.
By 1998, after net losses of $5.8 million in 1997, the venture was not proving to be profitable, so in March of that same year, Sun-Rype decided to pull out of the Chinese market. The company absorbed $4.4 million in losses.
initiated a $40 million hostile takeover
bid of Sun-Rype. The reasons behind this attempt were to immediately double Clearly Canadian's revenues and give it use of Sun-Rype's bottling plant, thus centralizing its production facilities. In order to initiate the takeover, Clearly Canadian began buying as many shares as possible from local apple growers who had been issued the shares over the last five decades in return for the process-grade apples used in production by Sun-Rype. At the time of the takeover attempt, Sun-Rype was still a co-operative organization, not a public company, so there were few ways for shareholders to sell their shares.
Shareholders were given the option of either one Clearly Canadian share per Sun-Rype share, or $1.61 and a half of a Clearly Canadian share per Sun-Rype share. This offer finally gave true financial value to the shares, inclining many shareholders to sell them. Both Sun-Rype's board of directors and the BC Fruit Growers Association argued against the takeover attempt to shareholders, and on July 18, the board of directors offered an 18–page document detailing why shareholders should refrain from selling. On July 24, just days later, Clearly Canadian also sent out a document describing to shareholders why they should sell their shares. Both of these documents contained invalid and misleading information about each company, such as share values and purchase options to shareholders, so on July 31, the British Columbia Securities Commission
issued an order for both companies to correct the statements.
With the bid offer expiry date of August 7 approaching, Clearly Canadian decided to extend its offer expiration date to August 19. It claimed it was doing this to give shareholders more time to decide whether or not to sell their shares. This extension caused further rifts between the two companies, with Sun-Rype claiming reason for the extension, while Clearly Canadian stayed focused on acquiring as many shares as possible. With the final bid deadline fast approaching, Clearly Canadian used many tactics in an attempt to gain more shares, including sending out circulars, hosting public receptions, and talking to community press. In the end however, Sun-Rype, which spent $741,000 fighting the takeover, was able to prevail over Clearly Canadian, losing only 15.8% of its shares to the beverage corporation.
proved how unsatisfied shareholders were with Sun-Rype management styles and caused differences within the company, apple growing community, and investors. As a result, Sun-Rype finally went public on the Toronto Stock Exchange
on November 12, 1996, with 2.35 million shares opening at $2.75 a share. It used the profits from the offering to pay off a $6.3 million bank debt and help fund its new Chinese operation.
is responsible for overseeing the conduct and affairs of the company. One of the boards' main responsibilities is to supervise management in carrying out their responsibility of day-to-day operations. Other duties include reviewing and approving Sun-Rype management's strategic plans, financial objectives, business plan
s, and budgets. The 8-person board is elected by Sun-Rype shareholders
.
The Sun-Rype board of directors currently consists of the following individuals:
1 Merv Geen is the current Chairman, a position he has held since 1992.
currently operates the following four committees
:
s are responsible for the day-to-day management and operation of the company's business.
The following executive officers are the most prominent employees of Sun-Rype:
1 The Common Shares controlled by Mr. Pattison are registered in the name of Great Pacific Capital Corp. and 4123239 Canada Inc.
regulations, all Sun-Rype products contain a nutrition facts label displaying the nutritional value of the product.
health, the fighting of diet-related cancers, the reduction of hypertension
, and diabetes management. The program is not only designed to educate consumers about the benefits of consuming antioxidants, but also to promote Sun-Rype’s apple based products.
The following Sun-Rype products display the AppleWise logo:
program administered by the Heart and Stroke Foundation of Canada
. The Health Check symbol on the package means that the product's nutritional information has been reviewed by the Foundation and meets specific nutrient criteria based on Canada's Food Guide to Healthy Eating
.
The following Sun-Rype products display the Health Check symbol:
Western Canada
Western Canada, also referred to as the Western provinces and commonly as the West, is a region of Canada that includes the four provinces west of the province of Ontario.- Provinces :...
largest fruit-based food and beverage
Food and Beverage
F&B is a common abbreviation in the United States and Commonwealth countries, including Hong Kong. F&B is typically the widely accepted abbreviation for "Food and Beverage", which is the sector/industry that specializes in the conceptualization, the making of, and delivery of foods...
manufacturer. Since its foundation in 1946, Sun-Rype has been producing juices and fruit snacks in Kelowna
Kelowna
Kelowna is a city on Okanagan Lake in the Okanagan Valley, in the southern interior of British Columbia, Canada. Its name derives from a Okanagan language term for "grizzly bear"...
, British Columbia
British Columbia
British Columbia is the westernmost of Canada's provinces and is known for its natural beauty, as reflected in its Latin motto, Splendor sine occasu . Its name was chosen by Queen Victoria in 1858...
, in the heart of the Okanagan
Okanagan
The Okanagan , also known as the Okanagan Valley and sometimes as Okanagan Country is a region located in the Canadian province of British Columbia defined by the basin of Okanagan Lake and the Canadian portion of the Okanagan River. As of 2009, the region's population is approximately 350,927. The...
.
In 2003, Sun-Rype was named as the 9th fastest growing company in British Columbia by The Vancouver Sun
The Vancouver Sun
The Vancouver Sun is a daily newspaper first published in the Canadian province of British Columbia on February 12, 1912. The paper is currently published by the Pacific Newspaper Group, a division of Postmedia Network. It is published six days a week, Monday to Saturday...
.
History
Incorporated on May 13, 1946, Sun-Rype was founded as BC Fruit Processing Ltd. This organization was founded by the BC Fruit Growers Association as a profitable alternative to use their process-grade apples in production rather than throwing them out. On April 2, 1959, after 13 years, BC Fruit Processing Ltd. changed its name to Sun-Rype Products Ltd.In 1963, Sun-Rype teamed up with the Fraser Valley Milk Producers Association to distribute juice cartons on Vancouver
Vancouver
Vancouver is a coastal seaport city on the mainland of British Columbia, Canada. It is the hub of Greater Vancouver, which, with over 2.3 million residents, is the third most populous metropolitan area in the country,...
milk routes. In 1979, it became the first juice manufacturing company in Canada to provide tetra packaging
Tetra Pak
Tetra Pak is a multinational food processing and packaging company of Swedish origin. It was founded in 1951 in Lund, Sweden, by Ruben Rausing. It was Erik Wallenberg who invented the tetrahedral package, today known as Tetra Classic...
for its 250 ml and 1 L
Litre
pic|200px|right|thumb|One litre is equivalent to this cubeEach side is 10 cm1 litre water = 1 kilogram water The litre is a metric system unit of volume equal to 1 cubic decimetre , to 1,000 cubic centimetres , and to 1/1,000 cubic metre...
juice packs. Also, in 1992, it developed the 6 L
Litre
pic|200px|right|thumb|One litre is equivalent to this cubeEach side is 10 cm1 litre water = 1 kilogram water The litre is a metric system unit of volume equal to 1 cubic decimetre , to 1,000 cubic centimetres , and to 1/1,000 cubic metre...
bag in a box
Bag-In-Box
In packaging, a bag-in-box or BiB is a type of container for the storage and transportation of liquids. It consists of a strong bladder , usually made of several layers of metallised film or other plastics, seated inside a corrugated fiberboard box. The bag is supplied to the 'filler' as an empty...
package.
In 1996, Sun-Rype celebrated its 50th year in business. In recognition of this milestone, mayor Jim Stuart of the City of Kelowna
Kelowna
Kelowna is a city on Okanagan Lake in the Okanagan Valley, in the southern interior of British Columbia, Canada. Its name derives from a Okanagan language term for "grizzly bear"...
honored Sun-Rype by declaring May 13, 1996 "Sun-Rype Day".
Failed expansion to China
In November 1994, Sun-Rype announced plans to expand to China. The company signed a memorandum of understandingMemorandum of understanding
A memorandum of understanding is a document describing a bilateral or multilateral agreement between parties. It expresses a convergence of will between the parties, indicating an intended common line of action. It is often used in cases where parties either do not imply a legal commitment or in...
with Shanghai Jinqiao EPZ Scientific Development Co. Ltd. to produce and sell its juices in the Asian country. With a plant located in the Jinqiao Export Processing Zone in Pudong
Pudong
Pudong |Bank]]") is an area of Shanghai, China, located along the east side of the Huangpu River, across from the historic city center of Shanghai in Puxi. Formerly a little-developed agricultural area linked only by ferries, Pudong has grown rapidly since the 1990s and emerged as China's financial...
, Sun-Rype invested 65% of the $13 million project cost and anticipated to be selling its juices by the end of 1995.
This expansion plan almost immediately started to falter, and in 1997, Sun-Rype was forced to create a new joint venture with Lion Group
Lion Group
Not to be confused with Lion of JapanLion Group Malaysia is headed by chairman and chief executive officer Tan Sri William Cheng. Cheng's grandfather founded Lion as a small trading company in Singapore after leaving China in the 1920s. It became Malaysia's biggest steel manufacturer after winning...
, a Malaysian conglomerate
Conglomerate (company)
A conglomerate is a combination of two or more corporations engaged in entirely different businesses that fall under one corporate structure , usually involving a parent company and several subsidiaries. Often, a conglomerate is a multi-industry company...
. With this deal in place, Sun-Rype received land, equipment, and future working capital, while Lion Group took over ownership of the Asian subsidiary.
By 1998, after net losses of $5.8 million in 1997, the venture was not proving to be profitable, so in March of that same year, Sun-Rype decided to pull out of the Chinese market. The company absorbed $4.4 million in losses.
Hostile takeover attempt
In July 1996, Clearly Canadian Beverage CorporationClearly Canadian
Clearly Canadian is a flavoured sweet sparkling water produced by Clearly Canadian Beverage Corporation in Vernon, British Columbia. Clearly Canadian was popular in the 1980s and early 1990s, but fell out of favour in later years.-Flavors:...
initiated a $40 million hostile takeover
Takeover
In business, a takeover is the purchase of one company by another . In the UK, the term refers to the acquisition of a public company whose shares are listed on a stock exchange, in contrast to the acquisition of a private company.- Friendly takeovers :Before a bidder makes an offer for another...
bid of Sun-Rype. The reasons behind this attempt were to immediately double Clearly Canadian's revenues and give it use of Sun-Rype's bottling plant, thus centralizing its production facilities. In order to initiate the takeover, Clearly Canadian began buying as many shares as possible from local apple growers who had been issued the shares over the last five decades in return for the process-grade apples used in production by Sun-Rype. At the time of the takeover attempt, Sun-Rype was still a co-operative organization, not a public company, so there were few ways for shareholders to sell their shares.
Shareholders were given the option of either one Clearly Canadian share per Sun-Rype share, or $1.61 and a half of a Clearly Canadian share per Sun-Rype share. This offer finally gave true financial value to the shares, inclining many shareholders to sell them. Both Sun-Rype's board of directors and the BC Fruit Growers Association argued against the takeover attempt to shareholders, and on July 18, the board of directors offered an 18–page document detailing why shareholders should refrain from selling. On July 24, just days later, Clearly Canadian also sent out a document describing to shareholders why they should sell their shares. Both of these documents contained invalid and misleading information about each company, such as share values and purchase options to shareholders, so on July 31, the British Columbia Securities Commission
British Columbia Securities Commission
The British Columbia Securities Commission is a regulatory agency which administers and enforces securities legislation in the Canadian province of British Columbia.-See also:* Canadian securities regulation* Securities Commission...
issued an order for both companies to correct the statements.
With the bid offer expiry date of August 7 approaching, Clearly Canadian decided to extend its offer expiration date to August 19. It claimed it was doing this to give shareholders more time to decide whether or not to sell their shares. This extension caused further rifts between the two companies, with Sun-Rype claiming reason for the extension, while Clearly Canadian stayed focused on acquiring as many shares as possible. With the final bid deadline fast approaching, Clearly Canadian used many tactics in an attempt to gain more shares, including sending out circulars, hosting public receptions, and talking to community press. In the end however, Sun-Rype, which spent $741,000 fighting the takeover, was able to prevail over Clearly Canadian, losing only 15.8% of its shares to the beverage corporation.
Initial public offering
The hostile takeover attempt by Clearly CanadianClearly Canadian
Clearly Canadian is a flavoured sweet sparkling water produced by Clearly Canadian Beverage Corporation in Vernon, British Columbia. Clearly Canadian was popular in the 1980s and early 1990s, but fell out of favour in later years.-Flavors:...
proved how unsatisfied shareholders were with Sun-Rype management styles and caused differences within the company, apple growing community, and investors. As a result, Sun-Rype finally went public on the Toronto Stock Exchange
Toronto Stock Exchange
Toronto Stock Exchange is the largest stock exchange in Canada, the third largest in North America and the seventh largest in the world by market capitalisation. Based in Canada's largest city, Toronto, it is owned by and operated as a subsidiary of the TMX Group for the trading of senior equities...
on November 12, 1996, with 2.35 million shares opening at $2.75 a share. It used the profits from the offering to pay off a $6.3 million bank debt and help fund its new Chinese operation.
Board of directors
Sun-Rype's board of directorsBoard of directors
A board of directors is a body of elected or appointed members who jointly oversee the activities of a company or organization. Other names include board of governors, board of managers, board of regents, board of trustees, and board of visitors...
is responsible for overseeing the conduct and affairs of the company. One of the boards' main responsibilities is to supervise management in carrying out their responsibility of day-to-day operations. Other duties include reviewing and approving Sun-Rype management's strategic plans, financial objectives, business plan
Business plan
A business plan is a formal statement of a set of business goals, the reasons why they are believed attainable, and the plan for reaching those goals. It may also contain background information about the organization or team attempting to reach those goals....
s, and budgets. The 8-person board is elected by Sun-Rype shareholders
Shareholder
A shareholder or stockholder is an individual or institution that legally owns one or more shares of stock in a public or private corporation. Shareholders own the stock, but not the corporation itself ....
.
The Sun-Rype board of directors currently consists of the following individuals:
| Name | Position(s) held outside of Sun-Rype | Board member since |
|---|---|---|
| Merv Geen1 | Orchardist Orchard An orchard is an intentional planting of trees or shrubs that is maintained for food production. Orchards comprise fruit or nut-producing trees which are grown for commercial production. Orchards are also sometimes a feature of large gardens, where they serve an aesthetic as well as a productive... |
1992 |
| Glen Clark Glen Clark Glen David Clark is a politician in British Columbia, Canada who served as the 31st Premier of British Columbia from 1996 to 1999.-Early life and education:... |
President of the Jim Pattison Group Jim Pattison Group The Jim Pattison Group is Canada’s third largest privately held company and, in a recent survey by the Financial Post, The Jim Pattison Group was ranked as Canada’s 62nd largest company. Jim Pattison, a Vancouver-based entrepreneur is the Chairman, President, CEO, and sole owner of the Jim Pattison... |
2008 |
| James Eccott | Retired | 2003 |
| Michael J. Korenburg | Deputy Chairman & Managing Director of the Jim Pattison Group | 2008 |
| James A. Pattison | Managing Director, CEO & Chairman of the Jim Pattison Group | 2008 |
| Donald Selman | Consultant to Wolrige Mahon Chartered Accountants | 2001 |
| Douglas Souter | Retired | 2006 |
1 Merv Geen is the current Chairman, a position he has held since 1992.
Committees of the board of directors
The Sun-Rype board of directorsBoard of directors
A board of directors is a body of elected or appointed members who jointly oversee the activities of a company or organization. Other names include board of governors, board of managers, board of regents, board of trustees, and board of visitors...
currently operates the following four committees
Committee
A committee is a type of small deliberative assembly that is usually intended to remain subordinate to another, larger deliberative assembly—which when organized so that action on committee requires a vote by all its entitled members, is called the "Committee of the Whole"...
:
| Committee | Members | Committee responsibility |
|---|---|---|
| Audit Committee Audit committee In a U.S. publicly-traded company, an audit committee is an operating committee of the Board of Directors charged with oversight of financial reporting and disclosure. Committee members are drawn from members of the company's board of directors, with a Chairperson selected from among the committee... |
Donald Selman (chairman) Jess Alfonso Robert Dawson |
Responsible for reviewing company financial statements Financial statement A financial statement is a formal record of the financial activities of a business, person, or other entity. In British English—including United Kingdom company law—a financial statement is often referred to as an account, although the term financial statement is also used, particularly by... and certain other public documents required by regulatory authorities and making recommendations to the board of directors with respect to such statements and documents. |
| Capital Allocation Committee | Thomas Knowlton (chairman) Jess Alfonso Merv Geen Douglas Souter |
Responsible for providing counsel and advice to management with respect to capital expenditure Capital expenditure Capital expenditures are expenditures creating future benefits. A capital expenditure is incurred when a business spends money either to buy fixed assets or to add to the value of an existing fixed asset with a useful life extending beyond the taxable year... requests related to key strategic initiatives over and above those approved by the board of directors annually. |
| Compensation & Corporate Governance Committee | James Eccott (chairman) Robert Dawson Merv Geen Douglas Souter |
Responsible for nominating qualified candidates to serve as directors of the company, Sun-Rype’s overall approach to corporate governance Corporate governance Corporate governance is a number of processes, customs, policies, laws, and institutions which have impact on the way a company is controlled... , and assessing the effectiveness of the board of directors as a whole, the committees of the board, and the contribution of each individual director. This committee also has responsibility for deciding executive compensation Executive compensation Executive pay is financial compensation received by an officer of a firm, often as a mixture of salary, bonuses, shares of and/or call options on the company stock, etc. Over the past three decades, executive pay has risen dramatically beyond the rising levels of an average worker's wage... . |
| Executive Committee | Merv Geen (chairman) James Eccott Thomas Knowlton Donald Selman Eric Sorensen |
Responsible for ensuring that Sun-Rype's mission and strategic direction is reviewed annually as part of the regularly scheduled board meetings, is directed to work with management on developing the direction for the three-year strategic plan, and to assist with determining the agenda and plans for the annual planning session. |
Executive officers
Sun-Rype's executive officerExecutive officer
An executive officer is generally a person responsible for running an organization, although the exact nature of the role varies depending on the organization.-Administrative law:...
s are responsible for the day-to-day management and operation of the company's business.
The following executive officers are the most prominent employees of Sun-Rype:
| Name | Position(s) held with Sun-Rype | Position(s) held since |
|---|---|---|
| Dave McAnerney | President President A president is a leader of an organization, company, trade union, university, or country.Etymologically, a president is one who presides, who sits in leadership... Chief Executive Officer Chief executive officer A chief executive officer , managing director , Executive Director for non-profit organizations, or chief executive is the highest-ranking corporate officer or administrator in charge of total management of an organization... |
2010 |
| Don VanderZwaag | Vice President Vice president A vice president is an officer in government or business who is below a president in rank. The name comes from the Latin vice meaning 'in place of'. In some countries, the vice president is called the deputy president... of Finance Finance "Finance" is often defined simply as the management of money or “funds” management Modern finance, however, is a family of business activity that includes the origination, marketing, and management of cash and money surrogates through a variety of capital accounts, instruments, and markets created... Chief Financial Officer Chief financial officer The chief financial officer or Chief financial and operating officer is a corporate officer primarily responsible for managing the financial risks of the corporation. This officer is also responsible for financial planning and record-keeping, as well as financial reporting to higher management... |
2010 |
| Lesli Bradley | Vice President of Operations | 2010 |
| Cameron Johnston | Vice President of Sales Sales A sale is the act of selling a product or service in return for money or other compensation. It is an act of completion of a commercial activity.... & Marketing Marketing Marketing is the process used to determine what products or services may be of interest to customers, and the strategy to use in sales, communications and business development. It generates the strategy that underlies sales techniques, business communication, and business developments... |
2009 |
| Cindy Wilker | Vice President of Supply Chain Supply chain A supply chain is a system of organizations, people, technology, activities, information and resources involved in moving a product or service from supplier to customer. Supply chain activities transform natural resources, raw materials and components into a finished product that is delivered to... |
2009 |
Primary shareholders
The following shareholders each control over 10% of Sun-Rype's 10,827,600 common shares:| Name | Shares held | % of overall shares held |
|---|---|---|
| Jim Pattison Jim Pattison James Allen "Jim" Pattison, OC, OBC is a Vancouver-based Canadian entrepreneur who is the president, managing director, chief executive officer, chairman and sole owner of the Jim Pattison Group, the third largest privately held company in Canada... 1 |
5,257,500 | 48.56% |
1 The Common Shares controlled by Mr. Pattison are registered in the name of Great Pacific Capital Corp. and 4123239 Canada Inc.
Nutrition
As per Health CanadaHealth Canada
Health Canada is the department of the government of Canada with responsibility for national public health.The current Minister of Health is Leona Aglukkaq, a Conservative Member of Parliament appointed to the position by Prime Minister Stephen Harper.-Branches, regions and agencies:Health Canada...
regulations, all Sun-Rype products contain a nutrition facts label displaying the nutritional value of the product.
AppleWise
In 2003, Sun-Rype launched a new campaign called AppleWise. They decided to launch the program because of the recent amount of research completed on the benefits of antioxidants, such as heartHeart
The heart is a myogenic muscular organ found in all animals with a circulatory system , that is responsible for pumping blood throughout the blood vessels by repeated, rhythmic contractions...
health, the fighting of diet-related cancers, the reduction of hypertension
Hypertension
Hypertension or high blood pressure is a cardiac chronic medical condition in which the systemic arterial blood pressure is elevated. What that means is that the heart is having to work harder than it should to pump the blood around the body. Blood pressure involves two measurements, systolic and...
, and diabetes management. The program is not only designed to educate consumers about the benefits of consuming antioxidants, but also to promote Sun-Rype’s apple based products.
The following Sun-Rype products display the AppleWise logo:
- 100% Apple Juice and Apple Blends
- Fruit to Go fruit snacks
- Apple Sauce
Health Check
Currently, many of Sun-Rype's products are part of the Health CheckHealth Check
Health Check is an evidence-based food information program created and administered by the Heart and Stroke Foundation of Canada. The program aims to help Canadians make informed and healthy eating decisions through education, awareness campaigns and the placement of the Health Check logo on the...
program administered by the Heart and Stroke Foundation of Canada
Heart and Stroke Foundation of Canada
The Heart and Stroke Foundation of Canada is a registered Canadian charity. The foundation's purpose is centered around educating individuals about the prevention and management of heart disease and stroke, and to fund medical research regarding the causes of these conditions...
. The Health Check symbol on the package means that the product's nutritional information has been reviewed by the Foundation and meets specific nutrient criteria based on Canada's Food Guide to Healthy Eating
Canada's Food Guide to Healthy Eating
Canada's Food Guide is a nutrition guide produced by Health Canada. It is the second most requested Canadian government publication behind the Income Tax Forms...
.
The following Sun-Rype products display the Health Check symbol:
- All 100% Juices
- Fruit to Go fruit snacks
- FruitSource fruit snacks
- Fruit Plus juices
External links
- Sun-Rype - Official website
- findoutnow.ca - Fruit-to-Go promo site