C/Users/bwill/Downloads/pom-wonderful,9620case9620study, 9620QEP.pdf BACKGROUND POM Wonderful, headquartered in Los Angeles, California, produces a line of pomegranate juice and other blended juice beverages, including pomegranate juice mixed with blueberry, cranberry, cherry, mango, or tangerine juices, as well as tea and coffee of various flavors. Besides drinks, it sells capsules and concentrated liquid products that it markets as nutritional supplements, The pomegranates are grown in the central and southern San Joaquin Valley of Central California, both in the company's own orchards as well as orchards in the surrounding area. The juice is extracted mechanically from the fruit to create its famous lines of juices. POM Wonderful currently has six main product categories: This mutirial was deceloped by Yolanda Ledesma, Jennifer Lake, Vansuga Anderson, and Jennifer Sawayda under the direction of O.C. Ferrell and Linda Forcall It is provided for the Daniels Fund Ethics talulache at the Ucharity of New Mexico and is intended for lascroom discoulon Ifective or ineffective handling of administrative ethical or legal decisions by management Overs of this material are prohibited hem claiming this material as their own s mattpirit to beborn, or placing in on the laborsat Placeon call DUG Ferrell at 906-237-84es for more information. (1015) Juices: Pomegranate, POM Blueberry, POM Cherry, POM Mango, and POM Tangerine Tox: POM Tea, Pomegranate Tea, Pomegranate Lychee Green, Pomegranate Peach Passion White, Pomegranate Blackberry, LIGHT Wildberry White, LIGHT Orange Blossom Red, and LIGHT Hibiscus Green POMx Antioxidant Supplements: POMx pills supplement and POMx Natural Pornegranate Abstract Fresh pomegranate fruit POM Wonderful is the largest grower of the Wonderful variety of pomegranates in the country, owning 18,000 acres of orchard and supplying nearly 90 percent of fresh pomegranate fruit in the United States. Concentrate: Pomegranate concentrate for cocktails 18 19 10 S 6 5 & 6 8 9WUsers/bwill/Downloads/pom-wonderful, 9620case3620study,$6200EP.pdf Cucina Fund Ethier Initianye Unherity of New Mading POM Wonderful Faces Misleading Advertising Allegations INTRODUCTION The company POM Wonderful, LLC has become renowned for its hour-glass shaped bottles of - pomegranate juice. Founded in 2002, the mission of POM Wonderful "is to Introduce and supply consumers with the highest quality and best-tasting pomegranates and pomegranate food products." The pomegranate has become particularly popular for its exotic sensory appeal and high content of antioxidants. The company was founded by billionaire industrial agriculture couple Stewart and Lynda Rap Resnick. Shortly after it was founded, the company's pomegranate products took off with revenues for the company growing from $12 million to $91 million. POM Wonderful has largely based Its success on marketing claims concerning its healthy attributes and its ability to help reduce chances for disease. However, in the past few years it has been challenged by the government regarding the truthfulness of its advertising claims. The Federal Trade Commission (FTC) determined that POM Wonderful had made unsubstantiated claims about its products. Although an appeals court supported the FTC's findings, it did strike down one aspect of the FTC's ruling, providing a partial victory to POM Wonderful and other companies that make health claims about their products. This case begins by giving some background information on POM Wonderful and the global market of functional food and drinks. This market has shown significant growth during the past decade, as the superfruit (exotic fruit) as an ingredient has grown in popularity due to its value of combining health benefits with a good taste profile. We examine POM Wonderful's brand positioning in the market. Next. this case describes some of POM Wonderful's advertising claims and why they were challenged by the FTC It concludes with a discussion of the implications this ruling will have on the advertising claims of POM Wonderful and similar companies BACKGROUND 14 15 17 19 f17 6 5 6 & 8 9 0