Oxnard, California
July 18, 2000
In a move to broaden grower access to high-quality lettuce
varieties in North America, Seminis has combined the sales and distribution
of two of its brands: lettuce specialist Genecorp Seeds and full-line brand
Asgrow Vegetable Seeds.
"Genecorp leads the California and Arizona lettuce market with varieties
like Cannery Row, Raider and Honcho II, but it lacked the resources to
effectively trial and support its products in other regions," said Roger
Thulin, vice president of North America sales and marketing for Seminis. "In
contrast, Asgrow maintains one of the most extensive sales, distribution and
product development teams in North America, including staffs in Mexico and
Central America." The new relationship will offer better product availability and service to growers while increasing efficiencies in the
Seminis sales and marketing organization, he added.
Customers of both brands will benefit from the merger, according to Thulin.
"They will now be able to trial and purchase two independent product lines from
one source, with virtually no product overlap." Asgrow has focused its
lettuce research on specific types and slots, while Genecorp offers a full
line of mixes, red leafs and heading varieties, he said.
Following the merger, each brand will continue to operate independent research and plant breeding programs under Seminis Vegetable Seeds, their
common parent company.
"Growers should not expect to see a significant change in the direction of
either lettuce research program," Thulin said, adding that the distinctiveness of Genecorp products will carry through into brand
packaging, with Genecorp seed continuing to be marketed in the brand's
familiar cans and pails.
The combined sales and distribution organization will also serve to bolster
Asgrow's new direct-to-grower sales strategy in the western United States,
according to Matthew Johnston, Asgrow's director of sales for North America.
"Part of Genecorp's success in the western United States has been its on-farm contact with lettuce operations," Johnston said. "Growers want to
better control their futures and meet the challenges that consolidation in
the produce industry has created. Our combined teams will have the unmatched
ability to develop new products and provide other marketing support."
The union will also allow customers of both brands to continue long-term
brand relationships, said Jerry Vosti, Genecorp general manager. "In most
cases, Genecorp customers can continue to work with their current sales
representative."
Asgrow Vegetable Seeds, a Seminis business, develops and markets more than
1000 vegetable variety choices in 108 countries, with headquarters based in
Oxnard, California.
Genecorp Seeds is an independent brand of Seminis that specializes in lettuce seed. Genecorp has a significant market share in the western United
States, a region that contains 95% of domestic lettuce acreage.
Seminis (Nasdaq: SMNS), parent company of Asgrow Vegetable Seeds and Genecorp, is the largest developer, producer and marketer of vegetable seeds
in the world. The company uses seeds as the delivery vehicle for innovative
agricultural technology. Its products are designed to reduce the need for
agricultural chemicals, increase crop yield, reduce spoilage, offer longer
shelf life, create better tasting foods and foods with better nutritional
content. Seminis is a majority owned subsidiary of Savia (NYSE: VAI), a
Mexico-based conglomerate with leadership positions in financial services,
packaging and fresh foods.
Company news release
N2849 |