Sun-Maid

In 1873, Francis T. Eisen planted an experimental vineyard of Muscat grapes near Fresno. By 1878, packaged raisins were being shipped out of the state, and by 1903, California was producing 120 million pounds of raisins a year. Once raisins were established as a marketable crop that grew and dried well in the sun, raisin grape-growing areas expanded rapidly in the late 19th century. By this time, prices swung drastically as more growers entered the market.

The earliest successful efforts to form a cooperative business by raisin growers began in 1898. In 1912, a group of growers in the San Joaquin Valley formed a cooperative under the name California Associated Raisin Company. H.H. Welsh served as the first chairman. In 1914, the Association launched the Sun-Maid brand to sell its product. As its first advertising campaign, they sent a train pulling 60 freight cars of raisins to Chicago, with each car displaying a banner with the slogan, "Raisins Grown by 6,000 California Growers." In 1918, the company opened a new facility near downtown Fresno, California.

By early 1922, the California Associated Raisin Company's membership comprised 85% of the state's raisin growers. That year, the organization changed its name to Sun-Maid Growers of California to identify more closely with its nationally recognized brand. In 1923, the organization's sales in North America, South America, Europe, and Asia was taken over by the Sunland Sales Association.

In 1964, a new facility opened in neighboring Kingsburg. The 640,000-square-foot (59,000-square-meter) facility sits on more than 100 acres (40 hectares), and is located 20 miles (32 kilometers) south of Fresno. The Kingsburg plant continues to serve as the international headquarters of Sun-Maid Growers of California, while the corporate headquarters is located in Fresno, California.

The 1972 season was devastated by a March frost, resulting in the loss of 55% of the grapes in the San Joaquin Valley. As a result, Sun-Maid shut down its factory for the first time since 1953. In 1978, rainfall again wiped out 75% of the region's crop, resulting in Sun-Maid losing around 80,000 tons of raisins. Torrential rain in 1982 cost Sun-Maid $200 million in raisin losses.

Sun-Diamond Growers

In 1980, Sun-Maid joined with Sunsweet Growers, Diamond Walnut Growers, Valley Fig Growers, and Hazelnut Growers of Oregon to create the Stockton-based Sun-Diamond Growers of California cooperative. Sun-Maid president Frank R. Light was named president and chief executive of Sun-Diamond, as well as each member organization. Sun-Diamond reported net sales as high as $522 million in 1983 and $517 million in 1984.

Sun-Maid suffered an accounting scandal in 1985 and 1986, where growers received $27.3 million in overpayments due to falsified records and inflated profits of $43 million. Light resigned prior to his planned retirement. By May 1986, 29% of the cooperative's 2,100 members had pulled out. The loss of 35% of its expected inventory forced Sun-Maid to contract with outside growers.

Sun-Diamond was reorganized so that each member cooperative had its own president, corporate staff was cut, and the organization's debt was secured, and a multi-year plan to repay the lost money and equity was developed. Barry F. Kriebel took over as president of Sun-Maid. Despite losing 500 of its 2,100 members, the cooperative recovered by 1987. That year, it managed $158.3 million in sales, its lowest—yet most profitable—in five years. A $13.35-million settlement to the company's accounting scandal was announced in September 1988.