Canadian Vending

Products Snacks
Ocean Spray and PepsiCo Form Strategic Alliance


April 30, 2008
By Canadian Vending Staff

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LAKEVILLE– Ocean Spray and PepsiCo announced a long-term strategic alliance in which Pepsi-Cola North America will market, bottle and distribute single-serve cranberry juice products in the U.S. and Canada under the Ocean Spray name. The agreement also includes opportunities for the development of new product innovations across multiple trade channels in the future.

LAKEVILLE– Ocean Spray and PepsiCo announced a long-term strategic alliance in which Pepsi-Cola North America will market, bottle and distribute single-serve cranberry juice products in the U.S. and Canada under the Ocean Spray name. The agreement also includes opportunities for the development of new product innovations across multiple trade channels in the future.

“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 CEO, 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. When people think of cranberries, they think of Ocean Spray.”

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Said Ocean Spray President and CEO Randy Papadellis: “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.

Ocean Spray is an agricultural cooperative owned by more than 650 cranberry growers in Massachusetts, Wisconsin, New Jersey, Oregon, Washington, British Columbia, and other parts of Canada as well as more than 100 Florida grapefruit growers. Ocean Spay has been the best-selling brand name in the canned and bottled juice category since 1981. Ocean Spray posted fiscal 2005 gross sales of about $1.4 billion.

For more information, visit www.oceanspray.com or www.pepsi.com.