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{{Use mdy dates|date=June 2013}}
{{Short description|Canadian food and beverage manufacturer}}
{{Infobox company
| name = Sun-Rype Products Ltd.
| logo = Image:Sunrype logo.png
| logo_size = 150px
| logo_caption = Sun-Rype corporate logo
| type = [[Private company|Private]]
| traded_as =
| genre =
| foundation = May 13, 1946
| founder = BC Fruit Growers Association
| location = 1165 Ethel Street<br />{{nowrap|[[Kelowna]], [[British Columbia]]}}<br />V1Y 2W4
| industry = [[Food and beverage]]
| products = [[Juice]], [[Fruit snacks]], [[Snacks]], [[Cider]], Sparkling tea
| services =
| revenue = {{Unbulleted list|class=nowrap|{{Increase}} {{CAD|164 million|link=yes}} (2019)<ref name="sun-rype-2019-sale-to-lassonde" /><ref name="sun-rype-sale-infonews-ca" />|{{CAD|135.1 million|link=yes}} (2007)<ref name="2007annualrep">{{cite web|author=Sun-Rype Products Ltd.|date=February 28, 2008|url=http://media.corporate-ir.net/media_files/irol/70/70705/07_Annual_Report.pdf|title=Annual report for the year ended December 31, 2007|access-date=2008-03-05}}</ref>}}
| operating_income =
| net_income = {{Unbulleted list|class=nowrap|{{Increase}} {{CAD|9 million|link=yes}} (2019)<ref name="sun-rype-2019-sale-to-lassonde"/><ref name="sun-rype-sale-infonews-ca"/>|{{CAD|4.6 million|link=yes}} (2007)<ref name="2007annualrep"/>}}
| num_employees = 395 (2006)<ref name="2006infoform">{{cite web|author=Sun-Rype Products Ltd.|date=February 28, 2007|url=http://media.corporate-ir.net/media_files/irol/70/70705/pdfs/07AIF.pdf|title=Annual Information Form for the Year Ended December 31, 2006|access-date=March 30, 2007}}</ref>
| parent = [[Lassonde Industries|Lassonde Industries, Inc.]]<ref name="sun-rype-2019-sale-to-lassonde"/><ref name="sun-rype-sale-infonews-ca"/>
| divisions =
| subsid =
| owner =
| homepage = {{URL|https://www.sunrype.ca/}}
| dissolved =
| footnotes =
}}
'''Sun-Rype Products Ltd.''' is a [[Western Canada|Western Canadian]] fruit-based [[food and beverage]] manufacturer.<ref name="2006infoform"/> Since its foundation in 1946, Sun-Rype has been producing juices and fruit snacks based in [[Kelowna]], [[British Columbia]], in the [[Okanagan]].

==History==
Incorporated on May 13, 1946, Sun-Rype was founded as '''BC Fruit Processing Ltd.'''<ref>{{Cite web|title=Corporate Profile|url=http://ir.sunrype.com/phoenix.zhtml?c=70705&p=irol-irhome|publisher=Sun-Rype Products Ltd.|access-date=2007-03-30}}</ref><ref>{{Cite web|title=Our History|url=http://www.sunrype.com/history.php|work=Sun-Rype Products Ltd.|access-date=2007-03-30}}</ref> This organization was founded by the BC Fruit Growers Association as a profitable alternative to use their process-grade apples in production rather than throwing them out.<ref name="bearfruit">{{Cite journal|last=Attard|first=Yvonne|title=Fifty golden years: Sun-Rype continues to bear fruit|journal=Food in Canada|volume=56|issue=7|pages=50|date=September 1996}}</ref> On April 2, 1959, after 13 years, BC Fruit Processing Ltd. changed its name to Sun-Rype Products Ltd.<ref>{{Cite web|title=FAQ|url=http://ir.sunrype.com/phoenix.zhtml?c=70705&p=irol-faq|work=Sun-Rype Products Ltd.|access-date=2007-04-02}}</ref>

In 1963, Sun-Rype teamed up with the Fraser Valley Milk Producers Association to distribute juice cartons on [[Vancouver]] milk routes. In 1979, it became the first juice manufacturing company in Canada to provide [[Tetra Pak|tetra packaging]] for its 250 [[Litre#Millilitre (millilitre)|ml]] and 1 [[Litre|L]] juice packs. Also, in 1992, it developed the 6 [[litre|L]] [[Bag-In-Box|bag in a box]] package.<ref name="bearfruit"/> Since then, Sun-Rype has expanded manufacturing capabilities to include 1.36L PET plastic, 900ml [[Elopak]], and a can line. The Kelowna facility also produces a range of snack products.

In 1996, Sun-Rype celebrated its 50th year in business. In recognition of this milestone, the mayor of Kelowna Jim Stuart honored Sun-Rype by declaring May 13, 1996 as "Sun-Rype Day".<ref name="bearfruit"/>

===Failed expansion to China===
In November 1994, Sun-Rype announced plans to expand to China. The company signed a [[memorandum of understanding]] with Shanghai Jinqiao EPZ Scientific Development Co. Ltd. to produce and sell its juices in the Asian country. With a plant located in the Jinqiao Export Processing Zone in [[Pudong]], Sun-Rype invested 65% of the $13 million project cost and anticipated to be selling its juices by the end of 1995.<ref>{{cite press release|title=New Canadian business initiatives in China|publisher=Canada Trade Missions|date=November 10, 1994|url=http://www.tcm-mec.gc.ca/1994_pr_Nov_10-en.asp|access-date=2007-04-02}}</ref>

This expansion plan almost immediately started to falter, and in 1997, Sun-Rype was forced to create a new joint venture with [[Lion Group]], a [[Malaysia]]n [[Conglomerate (company)|conglomerate]]. With this deal in place, Sun-Rype received land, equipment, and future working capital, while Lion Group took over ownership of the Asian subsidiary.<ref>{{Cite news|last=Damsell|first=Keith|title=Investors left flat by beverage saga|work=Financial Post|date=August 29, 1997}}</ref>

By 1998, after net losses of $5.8 million in 1997, the venture was not proving to be profitable, so in March of that same year, Sun-Rype decided to pull out of the Chinese market.<ref>{{cite web|author=Sun-Rype Products Ltd.|date=2000|url=http://media.corporate-ir.net/media_files/irol/70/70705/FileUpload/annreport2_99.pdf|title=Annual Report 1999|access-date=2 April 2007}}</ref><ref>{{Cite journal|last=Lazarus|first=Eve|title=Sun-Rype rethinks its expansion plans|journal=Marketing Magazine|volume=103|issue=14|pages=3|date=April 13, 1998}}</ref> The company absorbed $4.4 million in losses.<ref>{{Cite news|title=BC juice manufacturer drops plan to sell in China|publisher=Canadian Press|date=October 20, 1998}}</ref>

===Hostile takeover attempt===
In July 1996, [[Clearly Canadian|Clearly Canadian Beverage Corporation]] initiated a $40 million hostile [[takeover]] bid of Sun-Rype.<ref>{{Cite news|last=Connolly|first=Kathleen|title=Bid made for control of Sun-Rype|work=Oliver Chronicle|date=July 17, 1996|url=http://www.oliverchronicle.com/Archive/1996_2.htm|access-date=2007-03-31|archive-url=https://web.archive.org/web/20070929003948/http://www.oliverchronicle.com/Archive/1996_2.htm  |archive-date=September 29, 2007}}</ref> The reasons behind this attempt were to immediately double Clearly Canadian's revenues and give it use of Sun-Rype's bottling plant, thus centralizing its production facilities.<ref name="addhype">{{Cite journal|last=McCullough|first=Michael|title=Just add hype|journal=Canadian Business|volume=69|issue=15|pages=130–135|date=December 1996}}</ref> In order to initiate the takeover, Clearly Canadian began buying as many shares as possible from local apple growers who had been issued the shares over the last five decades in return for the process-grade apples used in production by Sun-Rype. At the time of the takeover attempt, Sun-Rype was still a co-operative organization, not a public company, so there were few ways for shareholders to sell their shares.<ref name="lifeapples">{{Cite news|last=MacNaull|first=Steve|title=When life hands you apples, make juice|work=[[The Globe and Mail]]|date=October 26, 2005|url=http://www.globeadvisor.com/servlet/ArticleNews/story/gam/20051026/SUNRYPE26|access-date=2007-03-30}}</ref>

Shareholders were given the option of either one Clearly Canadian share per Sun-Rype share, or $1.61 and a half of a Clearly Canadian share per Sun-Rype share. This offer finally gave true financial value to the shares, inclining many shareholders to sell them. Both Sun-Rype's board of directors and the BC Fruit Growers Association argued against the takeover attempt to shareholders, and on July 18, the board of directors offered an 18–page document detailing why shareholders should refrain from selling.<ref name="fptakeover">{{Cite journal|last=Damsell|first=Keith|title=Doug Mason can see clearly now|journal=Financial Post|volume=90|issue=30|pages=12|date=July 27–29, 1996}}</ref> On July 24, just days later, Clearly Canadian also sent out a document describing to shareholders why they should sell their shares. Both of these documents contained invalid and misleading information about each company, such as share values and purchase options to shareholders, so on July 31, the [[British Columbia Securities Commission]] issued an order for both companies to correct the statements.<ref>{{cite press release |title=Securities Commission Issues Decision on Clearly Canadian and Sun-Rype|publisher=British Columbia Securities Commission|date=July 31, 1996|url=http://www.bcsc.bc.ca/release.aspx?id=479|access-date=March 31, 2007}}</ref>

With the bid offer expiry date of August 7 approaching, Clearly Canadian decided to extend its offer expiration date to August 19. It claimed it was doing this to give shareholders more time to decide whether or not to sell their shares. This extension caused further rifts between the two companies, with Sun-Rype claiming reason for the extension, while Clearly Canadian stayed focused on acquiring as many shares as possible.<ref>{{Cite news|title=Deadline stretched for Sun-Rype buy-out|work=Oliver Chronicle|date=August 8, 1996|url=http://www.oliverchronicle.com/Archive/1996_5.htm|access-date=2007-03-31|archive-url=https://web.archive.org/web/20070929003943/http://www.oliverchronicle.com/Archive/1996_5.htm  |archive-date=September 29, 2007}}</ref> With the final bid deadline fast approaching, Clearly Canadian used many tactics in an attempt to gain more shares, including sending out circulars, hosting public receptions, and talking to community press.<ref name="addhype"/> In the end however, Sun-Rype, which spent $741,000 fighting the takeover, was able to prevail over Clearly Canadian, losing only 15.8% of its shares to the beverage corporation.<ref>{{Cite news|title=A hostile takeover bid leaves Sun-Rype a bit sour financially|work=[[Vancouver Sun]]|date=November 30, 1996}}</ref><ref>{{Cite news|last=Nutt|first=Rod|title=Clearly Canadian takeover bid falls flat|work=[[Vancouver Sun]]|date=August 23, 1996}}</ref>

===Initial public offering===
The hostile takeover attempt by [[Clearly Canadian]] proved how unsatisfied shareholders were with Sun-Rype management styles and caused differences within the company, apple growing community, and investors.<ref name="lifeapples"/> As a result, Sun-Rype finally went public on the [[Toronto Stock Exchange]] on November 12, 1996, with 2.35 million shares opening at $2.75 a share.<ref>{{Cite web|title=Economic Profile|url=http://www.edccord.com/economic_profile/profile_economic2.htm |publisher=Economic Development Commission|access-date=2007-04-02}}</ref><ref>{{Cite news|title=Investment news |work=The Globe and Mail|date=November 5, 1996}}</ref> It used the profits from the offering to pay off a $6.3 million bank debt and help fund its new Chinese operation.<ref>{{Cite journal|title=Sun-Rype files prospectus for IPO|journal=Financial Post|volume=9|issue=119|pages=7|date=August 29, 1996}}</ref>

===From public corporation to private===
In September 2013, Sun-Rype Products Ltd. became privately owned by the [[Jim Pattison Group]].<ref>{{Cite news |archive-date=Aug 28, 2017 |archive-url=https://web.archive.org/web/20170828012526/http://www.pressreader.com/canada/the-daily-courier/20160223/281801398032311 |url=http://www.pressreader.com/canada/the-daily-courier/20160223/281801398032311 |title=How sweet it is |date=23 Feb 2016 |first=Steve |last=MacNaull |publisher=[[The Daily Courier (Kelowna)|The Daily Courier]] |language=en |access-date=24 July 2023 |via=[[PressReader]] |url-status=live}}</ref>

===Sale to Lassonde Industries Inc.===
On October 29, 2019, The [[Jim Pattison Group]] sold its [[Subsidiary|wholly owned subsidiary]] Sun-Rype to [[Lassonde Industries|Lassonde Industries Inc.]] for {{CAD|80 million|link=yes}}, in an all cash deal expected to close before the end of the current calendar year.<ref name="sun-rype-2019-sale-to-lassonde">{{cite news|work=Lassonde Industries Inc.|title=Canadian-owned companies Lassonde Industries Inc. and Sun-Rype Products Ltd. to join forces|url=https://www.lassonde.com/en/communications/canadian-owned-companies-lassonde-industries-inc-and-sun-rype-products-ltd-to-join-forces/|access-date=30 October 2019|publisher=Lassonde Industries Inc.|date=29 October 2019}}</ref><ref name="sun-rype-sale-infonews-ca">{{cite news|last=Michaels|first=Kathy|title=Deal to sell Sun-Rype for $80 million underway|url=https://infotel.ca/newsitem/deal-to-sell-sun-rype-for-80-million-underway/it67168|access-date=October 30, 2019|work=INFOnews.ca, a division of InfoTel Multimedia, Ltd.|date=October 29, 2019}}</ref> As well, in announcing the sale, it was reported that Sun-Rype had {{CAD|164 million|link=yes}} in gross sales for their fiscal year ended September 30, 2019, and {{CAD|9 million|link=yes}} in [[EBITDA]].<ref name="sun-rype-sale-infonews-ca"/><ref name="sun-rype-2019-sale-to-lassonde"/>

== Products ==

=== Juices and beverages ===
SunRype's flagship product is not from concentrate apple juice which is also known as "Blue Label" apple juice.<ref>{{Cite web|url=https://www.stockhouse.com/news/press-releases/2017/04/25/it-s-about-time-sunrype-launches-new-premium-craft-cider|title=It's About Time: SunRype Launches New Premium Craft Cider|last=Stockhouse.com|website=www.stockhouse.com|access-date=2017-08-28}}</ref>{{Unreliable source?|date=August 2017}} SunRype was the first to combine fruit and vegetable together in a juice.{{citation needed|date=August 2017}}

=== Snacks ===
In the early 1990s the company expanded into snack foods with the launch of Fruit to Go, a 100% fruit snack made with fruit juices and purees, followed by Energy to Go in 1999, which was replaced by FruitSource in 2005. SunRype Energy and Fruit & Chia bars moved the brand beyond 100% fruit to incorporate new ingredients such as oats, seeds, protein and chocolate. In 2016, SunRype re-positioned its snack lineup as gluten free, nut free, vegan and kosher. Further to this strategy, SunRype released Good Bites, a date-based snack.

=== Cider and iced tea expansion ===
In 2017, expanded its beverage portfolio and began selling [[cider]] in private liquor stores in BC and Alberta under the SunRype brand name. The company also introduced a line of [[iced tea]]s in 355ml tall cans, called SunRype Sparkling Tea.<ref>{{Cite web|url=http://www.newswire.ca/news-releases/sunrype-debuts-a-refreshing-new-tea-lineup-628478873.html|title=SunRype Debuts a Refreshing New Tea Lineup|website=www.newswire.ca|access-date=August 27, 2017}}</ref>

==References==
{{Reflist|2}}

==External links==
*[https://www.sunrype.ca/ Sun-Rype] - Official Canada website
*[http://www.sunrypeusa.com SunRype USA] - Official U.S. website
*[http://www.sunrypecider.com SunRype Cider]
*[http://www.sunrypetea.com SunRype Iced teas]

[[Category:Canadian companies established in 1946]]
[[Category:Companies based in Kelowna]]
[[Category:Companies formerly listed on the Toronto Stock Exchange]]
[[Category:Drink companies of Canada]]
[[Category:Food and drink companies based in British Columbia]]
[[Category:Food and drink companies established in 1946]]
[[Category:Food and drink companies of Canada]]
[[Category:1946 establishments in British Columbia]]

Sun-Rype - Revision history

imported>Franz.wohlkoenig: Missing or empty |title= solved