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World orange juice market: benefits of generic advertising

Spreen, Thomas, Jauregui, Carlos
British food journal 2009 v.111 no.8 pp. 852-865
orange juice, advertising, food marketing, generic advertising, profitability, consumer demand, processed foods, funding, foods, food industry, food processing, imports, oranges
Purpose – This paper aims to examine the generic advertising program of the Florida processed orange industry. Design/methodology/approach – A model of the world orange juice market is used to assess the presence and level of free riding by Brazilian orange growers on the Florida program. Findings – Recent legal challenges have caused the program to be fully funded by Florida orange growers. The results suggest that elimination of the promotion program would negatively impact grower revenue in both Florida and Sao Paulo and this provides evidence that there is considerable free riding by import suppliers to the US orange juice market. Originality/value – The paper uses a model of the world orange juice market to consider the effect of elimination of the Florida generic advertising program to promote orange juice consumption in the USA.