PepsiCo and Ocean Spray have enjoyed a business relationship in the U.S. since 2006, when Ocean Spray's single-serve juices and juice drinks entered the PepsiCo bottling system. As a result of this relationship, which utilizes PepsiCo's market position and expertise in the convenience and gas (C&G) channel, Ocean Spray has earned a 5% share of the C&G single-serve juice market and grew volume by 20% in 2011.
"We see tremendous opportunities to grow our beverage business in emerging markets throughout Latin America, and we continue to take steps to strengthen our brand portfolio through product innovation, marketing and strategic partnerships," said Luis Montoya, president of PepsiCo's Latin America Beverages Division. "Ocean Spray is already a great PepsiCo partner in the U.S., and we believe this will be a winning combination for Latin American consumers and customers. It positions us well to continue to gain share of the growing juice category."
"We are eager to continue building on our successful partnership with PepsiCo, as it will help us expand consumer access to Ocean Spray products in important international markets like Latin America," Ocean Spray's COO of Global Partner Operations, Stewart Gallagher, said. "We believe this is a great opportunity to further promote and deliver the health and nutrition benefits of the cranberry to consumers in Latin America."
The Latin America alliance between PepsiCo and Ocean Spray includes key countries in the Caribbean, Central America and South America and has a term of 20 years. Financial terms of the transaction were not disclosed.
From the January 17, 2012, Prepared Foods' Daily News.