Discussion Six

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The article discusses two vegetable juice-making farms: the Campbell’s and the Grimmway farms. Grimmway farms produce V7, a juice from seven vegetables: parsley, spinach, watercress, lettuce, beets, celery and carrots. Campbell produces V8, a juice made from 8 vegetables; tomatoes plus the V7 juices. Campbell’s plant became too old and outdated and instead of building another plant, they came into an agreement with the Grimmway farms to buy V7 from them and add tomato juice to it to make V8. Carrot juice is the specialty of Grimmway farm. V8 has been around since 1930s as it had been started by the Peacocks. The Peacocks has been sold out many times until it finally ended up to what it is currently known as Campbell’s. Campbell’s has bought BoltHouse farms; a company that deals with vegetable juices especially carrots and canned foods. The Campbell’s would therefore not need to acquire carrot juice from other farms in order to use in their splash drinks.

Kern County is a strong hold for carrots, beets and other vegetables. Therefore, it will reduce the transportation cost of ferrying the vegetables to the plants to be processed. Grimmway, which majorly deals with carrots all year around, is thus situated there. On the other hand, V8 is not produced here since tomatoes are not in abundance in Kern County. Thus, the Campbell’s would incur many unnecessary transportation costs that could otherwise be avoided. Besides, they get V7 from Grimmway in May, September and August. Transporting them to their factory in order to process them would not be very costly as it is done in only those three months.

In my opinion, Grimmway will not continue to produce v7. The reason being that Campbell has acquired Bolthouse and it will have all the carrot juice it needs. Carrot juice is the competing edge of Grimmway and its biggest customer is Campbell. If Campbell does not buy the carrot juice from Grimmway, Grimmway will die off and thus will not produce the V7 anymore. This is because V7 is only produced three months a year and carrot juice is produced throughout the year. Carrot juice is the major product.

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