Back in the summer of 2006 PepsiCo subsidiary Pepsi-Cola North America Beverages (PCNAB) agreed to market, bottle, and distribute single-serve cranberry juice products in the US and Canada.
The partnership proved successful and has now been extended to include several more flavours of Ocean Spray drinks. Starting in February, PCNAB will produce, distribute, and market five more Ocean Spray products: 100% Apple, 100% Orange, Ruby Red Grapefruit, Pineapple Peach Mango, and Strawberry Kiwi.
Ocean Spray will be adding blueberry flavour to its portfolio next year, and so under the agreement PCNAB will also distribute a 15.2-ounce blueberry juice cocktail.
Wide distribution network
By extending the agreement with PepsiCo, Ocean Spray hopes to take advantage of its broad retail network and ultimately, reach more customers.
“We know Pepsi’s distribution strength will bring these flavours and our brand to health-conscious consumers all across the country,” said Keith Benoit, senior director of special markets at Ocean Spray.
For PepsiCo adding more products to the agreement with Ocean Spray is chance to tap into a growing niche of the sluggish drink market.
Healthy drink growth
Tom Silk, marketing VP for hydration and juice brands at PCNAB said: “Ocean Spray juices and juice drinks represent an important part of our overall beverage strategy, particularly from a wellness standpoint.”
PepsiCo has found growth harder to come by in drinks than snacks over the past few years. In the difficult economic climate that trend has continued. PepsiCo Americas Beverage reported a 7 per cent decline in net revenue in third quarter results published earlier this month.
Ocean Spray, on the other hand, is a beverage business that has grown at a healthy rate since the partnership with PepsiCo was signed three years ago. Sales revenue has grown from $1.4bn in 2005 to $1.9bn in 2008.