The firm has agreed to purchase all cranberry processing assets and inventory of unprocessed cranberries from Wisconsin-based Northland Cherries.

The purchase-and-sale agreement is worth some $28 million and has been signed by both companies. Under its terms, Ocean Spray will buy Northland’s 172,000sq ft cranberry receiving and concentrate manufacturing plant as well as an on-site building. The purchase also extends to Northland’s existing inventory of frozen, unprocessed cranberries but does not include the Northland brand or retail juice business.

In addition, Ocean Spray will pay $5m to secure first option on the purchase of 14 Northland-owned cranberry marshes in Wisconsin. This excludes three cranberry properties that will continue to be owned and operated by Northland. Ocean Spray and its grower-owners will have 180 days to exercise the option of buying those acres at a set price.

Under the terms of the deal signed by the two companies, Ocean Spray will receive and convert into concentrate Northlands’ cranberries for Northland in turn to use that concentrate to bottle, market and sell its own juice brands.

"Ocean Spray is growing, not only as a brand, but as a manufacturer of cranberry ingredients for the worldwide market,’ said Randy Papadellis, president and ceo of Ocean Spray. "We already have a strong presence in Wisconsin with our growers and our existing plant operations, and this agreement sends a clear signal that our presence and the cranberry industry as a whole is growing."