PepsiCo and Ocean Spray Announce Strategic Alliance in Latin America
PepsiCo and Ocean Spray Cranberries have formed a strategic alliance in Latin America. As part of the alliance, PepsiCo will have exclusive rights to manufacture and distribute a portfolio of cranberry- and blueberry-based beverages through its Latin America Beverages division. The companies will share marketing responsibilities for the products and intend to collaborate on product innovation.
PepsiCo and Ocean Spray have enjoyed a successful business relationship in the US since 2006, when Ocean Spray’s single-serve juices and juice drinks entered the PepsiCo bottling system. Ocean Spray is an agricultural co-operative owned by more than 700 cranberry growers in the US and Canada as well as more than 50 Florida grapefruit growers. With sales of over $2 billion, Ocean Spray is North America’s leading producer of canned and bottled juices and juice drinks, and has been the best-selling brand name in the canned and bottled juice category since 1981.
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.
