 
2001 Annual Report
Chairman's Message
In a time of unprecedented pressures on U.S. agriculture, particularly western ag including our citrus industry, 2001 was generally a rebound year for Sunkist. It was a year that we selected a new leader. For most varieties, it was a year of recovery following two very difficult years. It was a year of changes as Sunkist began repositioning, revitalizing, and restructuring itself to better serve its customers and to better compete in today's marketplace.
The search committee worked diligently to find the right president to lead Sunkist in these turbulent times. We found that leader in Jeff Gargiulo. He has the experience, the expertise and the vision to guide us through the issues and challenges we face.
On a consolidated basis of all districts, most varieties improved over 2000 in both FOB's and gross returns to growers. There were corresponding increases in gross returns per producing acres. The one exception was lemons, which experienced slight reductions, although this variety still led all varieties in gross returns per acre.
Not all growers and districts benefited equally from improved returns. Throughout the year, those Sunkist growers who had what the market wanted enjoyed reasonable returns. Those growers with light production, lower grade product and fruit that was out of favor with the consumer did not.
As growers we are all facing the same problems - the weather, the market, the competition, the governmental regulations and the cost of inputs. We know what it is like to grow a crop that sells for less than the cost of production.
As growers, we understand that our livelihoods are dependent on fresh fruit prices. However, as growers, we must also understand this fast changing world and how it affects our produce industry. Sunkist operates in an environment of rapidly changing markets - of accelerated retail consolidation and increasing competition. These changes, whether we like them or not, influence the way we must do business.
Sunkist is a very complex cooperative organization. We must all understand our roles in the system. Sunkist growers must produce the highest quality fruit - fruit the market wants. Sunkist shippers must put up the best pack possible and provide the most up-to-date production information. Sunkist itself markets the fruit effectively to earn the highest possible return for its grower-owners. Collectively, we must not over-supply the market.
Sunkist was born out of need - the need for growers to band together in order to compete and market their fruit. This common need still exists. The way we sell our fruit, however, is evolving to meet the way business is done today. We are becoming more customer-focused, more competitive and more cost efficient.
Your board of directors and management have devoted considerable time and effort to develop solutions to many of these complex issues. As with most business strategies, ours is a work in progress with ongoing improvement and refinement. We are deeply appreciative of the input and support we receive as we all work together to move Sunkist forward and achieve our common goals.
With Jeff at the helm, we will continue to implement key strategic decisions. We will continue to plan for the future, striking a balance between revenue and costs and between the short-term and the long-term.
Change is not easy, but most of us recognize that it is essential to survival. The critical decisions that will be made in the months ahead will be long-term strategic decisions, not short-term reactionary ones. Their potential, and Sunkist's, is far reaching.
I am grateful for the opportunity to serve as your chairman, and I am thankful to the board officers for their support and counsel and to the entire board for its untiring efforts and unselfish service to assure present success and future achievements of the Sunkist system.
Al Williams
Chairman of the Board
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