University of Wisconsin-Madison

2016 Executive Summary

Lauren Baker

Molly Hendrickson

Jaime Sawle

Ciera Ballmer

Megan Lauber

Mikayla Simonson

Erica Ballmer

Brandon Maly

Micheala Slind

Maryjane Behm

Mariah Martin

Nick Troiola

Kristen Broege

Nicole Nehls

Dakotah Walker

Diana Cruz

Matt Olson

Savannah Waller

Natalie Endres

Nicole Pralle

Alison Wedig

Sydney Endres

Lijing Quan

Jessica Wendt

Jordan Gaal

McKenzie Rowley

Taylre Wilke

Kate Griswold

Elizabeth Sarbacker

Advisor:

Sara Griswold

Sarah Botham
Proud owners of

INTRODUCTION
Prices in the cranberry market have declined steadily for nearly
a decade and the need for something to invigorate the heart of
the industry and bring profitability back to farmers is vital. In fact,
the 2014 cranberry harvest resulted in a surplus of cranberries
that were purchased by the USDA to subsidize cranberry farmers.1
Its clear that growers need to bring innovation and added value
to a product thats been around for generations. Consumers
want healthier ways to snack and are drawn to fresh options in
convenience packaging. Healthy snack foods, such as fruit, are on
the rise and projected to grow 5 percent by 2018.2
Introducing CranBerr, a new cranberry cultivar developed by
the University of WisconsinMadison, selectively bred for natural
sweetness fresh from the vine. Unlike traditional tart cranberries,
this cultivar sweetens as it ripens. Wisconsin-grown and the first
of its kind, the CranBerr is perfect for heart-healthy, convenient
snacking in fresh and dried options. The naturally sweet CranBerr
creates a new market opportunity for growers and for the industry
as a whole.
BerrFresh is a 20-year-old regional fruit distributor located in
LaCrosse, Wisconsin. The companys brands include StrawBerr,
BlueBerr and RaspBerr, and it has an established presence in
Wisconsin and Midwest markets. This sweet cranberry cultivar
created a market opportunity for BerrFresh to broaden its
portfolio of healthy fruits and fills a seasonal gap in the product
line. The in-house BerrFresh marketing team will use the Heart of
Cran campaign to launch CranBerr into Wisconsin, the leading
cranberry producing state, in year one. We will expand into the
Midwest market in the following years.
Overall berry consumption is growing by 4 percent annually with
Americans consuming 400 million pounds of cranberries each
year.3 Considering the continued growth in the fruit snacking
markets and the producers need for new options, now is the
perfect time to launch CranBerr.

MARKET
ANALYSIS- MARKET TRENDS

Overall U.S. berry consumption is growing annually by 4

percent.3

Cranberry consumption has remained constant for the

past seven years, at 0.8 pounds per capita per year.4

Packaged fresh fruit accounts for two-thirds of total fresh

fruit sales. The fresh-cut-fruit-in-small-packages segment
grew 120.5 percent between 2013 and 2015.5

Healthy, on-the-go options

are a priority for consumers,
and 67 percent of consumers
buy fruit for snacking.6

Parents and millennials want

on-the-go snack options and
are willing to pay more for
convenient, fresh snacks.6

Fifty-seven percent of all

consumers care about healthy
living and identify themselves
as at least sufficiently active.6

After a decline in 2008 and

2009, the dried fruit market
grew by 4.9 percent in 2013. As disposable income
increased, per capita consumption of dried fruit increased
as well and is expected to continue growing, with the total
market revenue projected to exceed $4.9 billion by 2020.7

Forty-eight percent of adults replace meals with snacks

three-to-four times per week, and 90 percent of
consumers snack multiple times throughout the day.8

CONSUMER PROFILES

Becca Berry - 35 years old

Victor Vine - 24 years old

Frannie Crannie - 58 years old

Married, Two children in elementary school

Single

Married

Masters degree
Part-time Physicians Assistant, household
income of $110,000
Looks for sweet, healthy snacks for the whole
family to eat on-the-go

Bachelors degree

Retired school teacher and grandmother,

household income of $150,000

Sales consultant earning $45,000

Goes to the gym daily and chooses healthy
foods with an appealing taste to complement
his active lifestyle

Values family tradition and listens to public

radio and other local radio shows

1. Fed. Government Steps in to Ease Cranberry Surplus, WAOW, 2014. 2. Snacks-The Year in Review, Food Business News, 2014. 3. Cranberries and Cranberry Trivia, Foodreference.com, 2014. 4. Per capita Cranberry
Consumption, uscranberries.com 5. Fruit, Mintel, 2015. 6. Leisure-Time Aerobic And Muscle-Strengthening Activity Among Adults, National Center for Health Statistics, 2012. 7. Dried Fruit and Vegetable Snack Production in the US, IBIS World, 2015. 8. U.S. Grocery Shopper Trends 2015, Food Marketing Institute, 2015.

MARKET SIZE

Wisconsin is the world leader in overall cranberry production, growing 66 percent of the United States cranberries.9 The CranBerr
is grown in Central Wisconsin, the heart of cranberry country. The primary target market for CranBerr consists of consumers
between the ages of 18 and 44 in Wisconsin, Minnesota, Illinois, Ohio and Iowa. This group is more willing to pay extra for
convenient, fresh food options.10 There are more than 10.8 million consumers in this target audience.11
The secondary market for CranBerr is individuals between the ages of 45 and 64 in the target states. Research indicates those who
fall within this age range are the most likely to consume ready to eat snack foods. There are more than 7.4 million consumers in
this target audience.12

MARKET POTENTIAL

The average American eats 267 servings of fruit each year. Of those servings, 150 are fresh (98 of which are eaten as a snack), 88
juice, 17 canned, eight dried and four are frozen.13 It is estimated that the 18.2 million individuals in the target market eat nearly 1.8
billion servings of fresh fruit and 148 million servings of dried fruit as a snack each year.
Available in 1-ounce packages, CranBerr provides a convenient single-serving of fresh or dried cranberries as a healthy snack.
CranBerr will account for 0.3 percent of fresh snack fruit consumption in target states or nearly 11.2 million 1-ounce servings of
CranBerr by the end of year three. CranBerr will also capture 2 percent of dried snack fruit consumption or roughly 2.7 million
1-ounce servings by the end of year three.

NEED FOR PRODUCT

After significant growth in the fresh and dried snack fruit markets over
the past four years, CranBerr will appeal to consumers who want sweet,
healthy foods and rely on convenient, grab-and-go snacks. In fact, in 2015,
shoppers spent $24.5 billion on snacks14 and 50 percent of consumers
have actively expressed an interest in products with reduced levels of salt
and added sugar.15

COMPETITIVE ANALYSIS
CranBerr is the first and only cranberry successfully bred for sweetness.
Consumers prioritize taste first and then evaluate based on health.16
CranBerr has a shelf life of 28 days, four times that of its direct competitors.

CranBerr

Fresh Fruits

Shelf Life:
3-4 weeks

Shelf Life:
2-7 days

Natural Sugars:
3g.
Calories:
13
Brix Scale: 14
Price/1 oz.
$1.09

Natural Sugars:
7-19g.
Calories:
35-100
Brix Scale: 12-16
Price/1 oz.
$0.37-0.57

Fresh Snack Fruit Market

CranBerrs direct competitors are fresh snack fruits like apples, pears,
bananas and oranges. CranBerr has an advantage over these fruits
because it can be sold fresh from late fall to early winter when other fruits
and berries are locally out of season.

Strengths

Weaknesses

Exclusive relationships
with growers
First-to-the-market
Parent company credibility
Fresh, local, plentiful supply
Significant health benefits
Convenience packaging

Opportunities:

Demand for healthy,

convenient snacks
Late harvest
Renew identity of
cranberry industry
Revitalize dried snack fruit
market

Seasonal freshness
Low market awareness
Premium price

Threats:

Pests and fungi

Weather
Perception of cranberries
Shadow products
Water supply
and contamination

CranBerr is rich in antioxidants and anti-inflammatory

agents, and is naturally sweet, but lower in sugar and
calories. CranBerr measures 14 on the Brix Scale,
a measure of natural sugar content in fruit ranging
between zero and 32. Traditional tart cranberries are
not sold as a packaged fresh fruit snack and therefore
are not a direct or indirect competitor.

Dried Snack Fruit Market

In the dried snack fruit market, the main competitor is
Craisins, but CranBerr stands apart from this product
simply because dried CranBerrs contain no added
sugar. The American Heart Association recommends
limiting sugar intake to six teaspoons per day for
women and seven teaspoons for men. One serving
of Craisins contains 29 grams or seven teaspoons of

9. Cranberries, UW-Extension Fruit Team, 2016. 10. How Millennials Are Changing Foods as We Know It, Forbes.com, 2012. 11. QuickFacts, US Census Bureau, 2014.
12. Millennials Have Nothing on Boomers When It Comes to Snacking, NPD Group, Inc., 2016. 13. State of the Plate: 2015 Study on Americas Consumption of Fruit & Vegetables, Produce for Better Health Foundation, 2015. 14. 68th Annual Consumer Expenditure Survey, Progressive Grocer, 2015.15. Consumers Want Less Sugar and Salt, Worry
Less About Fat, redorbit.com, 2015. 16. 2012 Food & Health Survey, foodinsight.org, 2012

3
sugar.17 CranBerr contains less than one-third
that amount and has 75 percent fewer calories.
Unlike the competitors, CranBerr has antiinflammatory properties, helps prevent urinary
tract infections and is rich in vitamins C, E and K,
Manganese and low in saturated fat, cholesterol
and sodium. CranBerrs indirect competitors
include other soft dried fruits, most of which contain
added sugar.

Dried CranBerr
Natural Sugar: 9g
Added Sugar: 0g
Calories: 40
Price/1oz: $1.29

Craisins
Natural Sugar: 2.5g
Added Sugar: 26.5g
Calories: 130
Price/1oz: $0.44

Dried Fruit
Natural Sugar: 17g
Added Sugar: 12g
Calories: 130
Price/1oz: $0.49-0.85

BUSINESS PROPOSITION
Strategy Statement

CranBerr is the only naturally sweet cranberry packaged for on-the-go, easy snacking. Offering heart-healthy nutritional benefits
and versatility to the fresh and dried cranberry market, CranBerr provides new opportunities and added value to growers.

Key Planning Assumptions

CranBerr is a brand extension of BerrFresh, a distributor of fresh and

dried fruit products from Wisconsin and the Midwest. The company has
established relationships with retailers in specific markets and access to
shelf space in each.

The CranBerr has been taste-tested and approved by customer focus

groups for sale and consumption, demonstrating demand for this new
cranberry cultivar.

Growers have licensed the sweet CranBerr cultivar from the Wisconsin
Alumni Research Foundation at the University of Wisconsin-Madison.
BerrFresh holds exclusive contracts with cranberry growers and anticipates
ample supply of CranBerr to meet product demand through year three
and beyond. CranBerr vines planted in 2010 provided a test crop in 2015
and will be ready for harvest in fall 2016.
BerrFresh has an established relationship with Culvers Franchising System,
Inc. who has agreed to a three-year partnership with the CranBerr brand.
All recipes have been taste-tested, and CranBerr custard and salads are
ready for introduction in Culvers restaurants.

Goals By End of Year Three

Achieve 30 percent brand awareness

within the target market.
- 25 percent aided recall
- 5 percent unaided recall

Secure a 0.3 percent market share

within the fresh snack fruit market
and 2 percent market share within
the dried snack fruit market in the
target regions.

Net profit meets or exceeds

$3 million dollars.

The average individual in our target audience consumes two servings of

fruit per day.

ACTION PLAN

Product and Positioning

CranBerr is the first-to-the-market, naturally sweet, heart-healthy cranberry for on-the-go snacking. It will be available in 1-ounce,
single-serving, dried and fresh snack packs with biodegradable packaging.

Placement
In year one, CranBerr will be available in 34 stores throughout Wisconsin within the Roundys family of supermarkets. The product
will be located in the fresh produce section and in the dried fruit aisle. Additionally, CranBerr will be sold in 298 Wisconsin Kwik
Trip convenience stores.
In year two, CranBerr will expand into 110 stores throughout major cities in Minnesota, Illinois, Michigan, Ohio and Iowa. The 193
Kwik Trip locations in Iowa and Minnesota will also carry CranBerr. Value packs of eight will be added in year two for each grocery
store location.
CranBerr will also be available in Culvers restaurants, a Wisconsin-based franchise known for its support of local, farm-fresh
ingredients.
17. Craisins Nutritional Information, livestrong.com, 2015

4
Price
TO RETAIL Fresh
1-ounce
pack

Fresh
8-pack

Dried
1-ounce
pack

Wholesale $0.84

$3.40 or
$0.43 per
ounce

$0.89

Suggested
$1.09
Retail

$4.09

$1.29

TO CULVERS
Fresh
18.75 lbs. bags
Dried
18.75 lbs. bags

Year 1

Dried
8-pack

Year 2

1 oz (WI)

EXPANSION

$3.75 or
$0.47 per
ounce

1 oz (WI)

EXPANSION

$4.79

1 oz (WI)

EXPANSION

Wholesale price
per ounce

Wholesale price
per bag

$0.24

$72.00

$0.30

$90.00

and Other
Grocery
Stores

Promotion: The Heart of Cran

Lose the Tart, Help the HeartTM

Year 3

8 pack (WI)

1 oz (WI)

8 pack (WI)

CAMPAIGN OBJECTIVES

The Heart of Cran campaign will launch CranBerr into the marketplace
with the tagline Lose the Tart, Help the HeartTM. This campaign focuses on
the naturally sweet, heart-healthy and convenience aspects of CranBerr.
Using strategic initatives, CranBerr will generate consumer interest and
foster connections between the product and the tradition of Wisconsin
cranberry farming.
Personnel
One CranBerr brand manager will be hired to collaborate with the
established BerrFresh marketing team and manage all launches, sales and
promotional events. Two brand ambassadors will be hired to drive the
CranCar, a mobile advertisement for the product. They will manage instore demonstrations and collect customer satisfaction surveys. They will
also organize marsh tours, festivals and trade shows.

Establish the fresh CranBerr snack as

the premier fresh fruit option and as
an innovative alternative to traditional
fresh fruit snack choices.

Re-establish the dried cranberry as a

healthy snack.

Establish a connection and

understanding between CranBerr
growers and consumers providing
additional profit for producers.

Earned Media and Public Relations

Generate a new market and added
Telling the CranBerr story will seed an emotional connection to the heart
value for cranberry producers.
of the brand. Strategic earned media initiatives will broaden exposure in
key markets in each launch region.
Share the Love - BerrFresh Bus Tours
Using the BerrBus, CranBerr will provide groups with an on-the-marsh experience to meet
farmers and taste fresh CranBerrs.
Culvers Partnership
Capitalizing on the restaurants farmer appreciation messages, CranBerr will partner with
Culvers to promote Wisconsin agriculture and the heart-healthy, naturally sweet CranBerr. It
will be available as an addition in kids meals and select menu items.

Social Media Marketing

The #HowDoYouCran photo contest will use established BerrFresh social media channels to encourage consumers to show where
they enjoy CranBerr. Inbound and outbound strategies will be implemented to bring this contest to life.
Digital Marketing
The BerrFresh website will feature a virtual farm tour using pictures and videos of farmers harvesting CranBerrs. Additionally, CranBerr will
be featured in the BerrFresh blog throughout the harvest season.

5
Earned Media and Public Relations
Telling the CranBerr story to educate and raise awareness will
seed an emotional connection to the heart of the brand. Strategic
earned media initiatives in select media channels will broaden
exposure in key markets. A similar strategy will be employed in
each launch region.
Demonstrations/Samples
A CranBerr-branded kiosk will be placed in select retail locations
for sampling during peak hours. CranBerr will also be featured at
the Wisconsin State Fair and Wisconsin cranberry festivals.
From the Heart
In February, CranBerr will promote its heart-healthy goodness
as part of the American Heart Associations Go Red for Women
campaign and donate 5 percent of total sales to local chapters.
Paid Advertising
The Heart of Cran campaign will advertise CranBerr as a naturally
sweet, heart-healthy snack in food and health magazines, on
billboards, in banner ads on the American Heart Association
website and in Facebook click-to-purchase ads.
Trade Shows and Mobile Promotion
CranBerr will be featured at select trade shows to broaden product
awareness, attract retailers and promote sales. The CranCar will
visit these and other key locations to promote CranBerr.

INCOME
STATEMENT

Year 2

Year 3

Fresh Sales

782,945

1,953,796

6,199,067

Dried Sales

169,296

467,132

1,614,275

Restaurant
Sales

353,073.60

792,633

1,180,040.40

1,305,313.71

3,213,561.73

8,993,381.68

Total COGS

517,275.53

1,180,448.70

3,255,018.53

Gross Profit

788,038.18

2,033,113.03

5,738,363.14

281,476

340,976

Net Sales

Year 1

Total Operating
Expenses

212,660

Total Marketing
Expenses

994,537.11

1,325,624.60

2,308,849.24

Total Expenses

1,207,197.11

1,607,100.60

2,249,825.24

Net Profit/Loss

(419,158.93)

426,012.43

3,088,537.91

% Profit

MARKETING
EXPENSES

-32%

Year 1

13%

Year 2

34%

Year 3

Billboards

20,000

20,000

270,000

Awards and Support

CranBerr will compete for several awards at the United Fresh
Trade Show. These accolades will be leveraged to enhance sales
and generate new retailer relationships and consumer interest.

Cross-Promotional Expense

30,000

40,000

50,000

CranCar

50,000

15,000

15,000

FINANCIALS

Personnel

BerriFresh buys CranBerr at $77.50 per barrel, contributing to

a base cost of goods sold of $0.26 per ounce and resulting in a
strong margin of return. Three CranBerr growers and 41.9 acres
will be needed to meet projected supply needs by year three.
Assuming 1 percent spoilage and providing a 25 percent grower
premium, we will generate added value of $15.50 per barrel for
our growers. A large investment in marketing and production
expenses in year one will result in a net loss. However, this investment will prove beneficial in generating brand awareness and
result in increased sales in years two and three. By the end of
year three, CranBerr will see a healthy gross profit of 34 percent,
while exceeding a net profit of $3 million.

BerrFresh Bus

45,000

20,000

20,000

130,000

181,500

187,808

Trade Shows

35,000

25,000

25,000

Website

22,000

15,000

15,000

Slotting Fees

50,000

100,000

200,000

Coupons

504,539

742,271

1,258,236

Samples

39,159.41

50,063.85

89,933.82

Advertising

48,400

94,000

130,000

Mon. & Meas.

15,000

20,000

20,000

Donations
Total Marketing
Expenses

5,439

13,390

37,472

994,537.11

1,325,624.60

2,308,849.24

MONITORING & MEASURING

GOAL

30% BRAND AWARENESS

25% aided; 5% unaided

MARKET SHARE
0.3% fresh; 2% dried

HOW

ViralHeat & Google Analytics

Qualitative + quantitative surveys
Online surveys

Quarterly market share reports

Year-on-year sales
Industry trends + product statistics

Sales reports
Monthly, quarterly, yearly

IF MORE

New retailer & grower relationships

E-commerce strategy

Explore product extensions

Holiday season opportunities

Expand beyond Midwest

Adjust price & supply

IF LESS

Revise messages & social media channels

Increase product education
Create partnerships with franchises

Increase samples & coupons

Re-evaluate cross channel
marketing

Review pricing strategy

Review package sizes
Limit production amounts

YEAR 3 NET PROFIT

$3 million