Beverage Industry

PepsiCo, Ocean Spray form Latin American alliance

January 17, 2012

PepsiCo, Purchase, N.Y., and Ocean Spray Cranberries Inc., Lakeville, Mass., 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. The 20-year alliance between PepsiCo and Ocean Spray Cranberries includes key countries in the Caribbean, Central America and South America.

“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, in a statement. “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.”

Ocean Spray’s single-serve juices and juice drinks became a part of the U.S. PepsiCo system in 2006. The U.S. partnership particularly leverages PepsiCo’s leadership and expertise in the gas and convenience store channel, in which Ocean Spray earned a 5 percent share of the single-serve juice market and grew volume by 20 percent in 2011, PepsiCo said.

“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,” said Stewart Gallagher, Ocean Spray’s chief operating officer of global partner operations, in a statement. “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.”