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Champion and the

Branded OJ Market

STRENGTHS
Low cost producer
Second largest producer in domestic
packaging industry
Well-located extrusion facilities
Knowledgeable operating people

WEAKNESSES
Limited extrusion capacity
Old machinery; not many updated
systems
Big OJ companies demand consistent
quality that Champion cannot produce;
printing etc
Not what branded juicers are looking for

Cautious investment strategy in


infrastructure

OPPORTUNITIES
Shrinking market size of dairies
Excess amount of board potential use
in branded OJ market

Rapid growth in Branded OJ market


Three big juicers expanding rapidly

International market growing rapidly

THREATS
Shrinking market share of Orange
Juice
Substitute product in plastic
container
IP is industry leader; technology
leader and aggressive pricer

Recommendations
Main objective is to regain lost market share
Theoretically, Champion needs to invest to be
competitive and provide high quality products
Without investment, market share likely to reduce

Differentiate products; possibly make up for


loss in Extruding facility
We do not have all of the relevant information
to make a solid recommendation
Lack of figures for costs and value created
Unknown effect on pricing and demand

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