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PepsiCo and Ocean Spray announce strategic alliance to crack Latin America

By Ben Bouckley , 17-Jan-2012
Last updated on 17-Jan-2012 at 16:17 GMT

PepsiCo and Ocean Spray have annonced a strategic alliance in Latin America in a bid to strengthen the former's juice portfolio in the region and increase accessibility of the latter's products in this region.

As part of the alliance, PepsiCo will possess 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 scope of the 20-year alliance includes key countries in the Caribbean, Central America and South America. Financial terms were not disclosed.

PepsiCo and Ocean Spray have enjoyed a successful business relationship in the U.S. since 2006, when Ocean Spray's single-serve juices and juice drinks entered the PepsiCo bottling system.

Pepsi claimed it expertise in convenience and gas (C&G) thereafter led to Ocean Spray cornering 5% of the C&G single-serve juice market, growing its volumes by 20% in 2011.

Can cranberries crack Latin America?

Luis Montoya, president of PepsiCo's Latin America Beverages Division, said: "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."

He added: "Ocean Spray is already a great PepsiCo partner in the US, 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 COO of Global Partner Operations, Stewart Gallagher, 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."

"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."

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