Beverage Industry

Ocean Spray And Pepsico Team Up Again

August 1, 2006
Ocean Spray And Pepsico Team Up Again

Ocean Spray, Lakeville-Middleboro, Mass., and PepsiCo, Purchase, N.Y., have renewed their distribution relationship, with a new long-term partnership in which Pepsi-Cola North America will market, bottle and distribute single-serve Ocean Spray cranberry juice products in the United States and Canada. The two companies had a distribution relationship until 2001 under which Pepsi carried Ocean Spray products in direct store delivery accounts.
The new agreement expands the partnership to include manufacturing and marketing. In addition, the companies say the agreement also will include opportunities for new product development, which reportedly will include future cold-fill products and possible carbonated products, as well as innovations across multiple trade channels.
“This is a chance for both PepsiCo and Ocean Spray to turn up the dialogue on the health benefits of cranberries," said Dawn Hudson, president and chief executive officer at Pepsi-Cola North America. “Over the past several years, we’ve built successful, mutually beneficial partnerships with strong brands like Lipton and Starbucks, and now we plan to work side by side with Ocean Spray to create a major healthy refreshment business focused on cranberries.”
Ocean Spray President and Chief Executive Officer Randy Papadellis added, “As the Ocean Spray cooperative moves to build its brand, we are seeking out alliances to reach consumers more broadly and powerfully than ever before. We’re thrilled to re-establish our partnership with Pepsi and begin a fruitful, long-lived relationship with the world’s premier beverage and snack company.”
Integration of single-serve juices into the Pepsi system will begin in 2007.