The Clement Pappas company is the second-largest producer of store brand ready-to-drink fruit juices and drinks in the US and a major producers of cranberry juices, drinks and sauces. The company markets its products in the US and Canada under the Ruby Kist brand. It also makes the organic Grown Right store brand, as well as private-label and food service products. Customers include retail food and food service companies; mass merchandisers; and drug, discount, and dollar stores. Fruit is sourced from US growers, as well as overseas. The company was founded in 1942 by Clement Dimitri Pappas and is majority owned by Canada's Lassonde Industries.
Change in Company Type
Clement Pappas is a subsidiary of Lassonde Industries, which acquired a 71% stake in the juice maker for $400 million in mid-2011. Clement Pappas offered a complementary assortment of products to Lassonde, which is also a family-owned juice maker. And while most of Lassonde's sales are generated in Canada, the company has added more US customers with Clement Pappas in its organization. The deal gave Lassonde Industries a 71% ownership stake and the Lassonde family a 10% share; the Pappas family retained the remainder, a minority stake of nearly 20%. Lassonde Industries also agreed to invest more than $105 million, while the Lassonde and Pappas families plan to inject some $40 million for investments.
Based in Carneys Point, New Jersey, Clement Pappas maintains production facilities and distribution centers in Seabrook, New Jersey; Baltimore, Maryland; Mountain Home, North Carolina; Springdale, Arkansas; Carver, Massachusetts; and Ontario, California. It also runs a cranberry receiving station in Carver, Massachusetts.
Clement Pappas generated C$417.1 million ($394.4) in sales in 2012, up significantly from C$178.6 million in sales at the time it was purchased by Lassonde. Its operating profit was C$34.4 million ($32.5) in 2012.
Despite slowing sales in all food sectors during the US economic downturn and stale growth in the organic food arena, Clement Pappas -- with its private-label organic products -- did not see a drop in its sales. In fact, according to the company, sales for its private-label organic juices continues to grow. Clement Pappas continues to operate five plants in Arkansas, California, Maryland, New Jersey, and North Carolina; it also runs a cranberry receiving center in Massachusetts.
Sales and Marketing
Clement Pappas serves several customer types, including mass merchandisers; drug, discount, and dollar stores; and retail food and food service companies. As part of its business, the company creates products for its customers under private labels.