PepsiCo is now the official distributor and bottler for Ocean Spray in the Caribbean and Latin America. This alliance is the extension of a 2006 agreement between the two companies, which saw PepsiCo taking over the distribution and bottling aspects of a wide portfolio of Ocean Spray's business across the United States.
The extension of that alliance to our territory will see PepsiCo Trinidad taking over the Ocean Spray distribution from Hadco.
The 20-year business deal was celebrated last month at Ocean Spray's headquarters in Lakeville, Massachusetts. The event also culminated the launch and/or relaunch of Ocean Spray over the last nine months in Colombia, Peru, Guatemala, Dominican Republic and T&T, as well as in many other Caribbean islands.
Journalists from T&T, Jamaica, Peru, Guatemala and Colombia were invited to participate in the celebrations alongside representatives from Ocean Spray and CabCorp, bottlers for Pepsico.
The weekend-long event included tours of Ocean Spray's operations, a visit to the company's largest cranberry bog in Wareham, and participation in a popular annual Cranberry Festival.
At the welcoming session, Keith Benoit, vice-president of Ocean Spray's global partners and developing markets, told the group that Ocean Spray is a co-operative owned by more than 600 cranberry-grower families since 1930.
"The company is owned by the growers who are also on our board of directors, and our job is to sell the fruit for them - whether it be our drinks, sauces and dried cranberry products," he said.
With sales exceeding US$2 billion, Ocean Spray is North America's leading producer of canned and bottled juices and juice drinks, and has been the best-selling brand name in the canned and bottled juice category since 1981.
Ocean Spray is sold in more than 50 countries and its cranberries can be found in 800-plus products worldwide.
Faced with increased competition from other brands, the company formed an alliance with PepsiCo to capture untapped markets. The alliance has proven so successful with tremendous growth for Ocean Spray that it just made sense to expand it to Latin America and the Caribbean, said Enrique Cortinas, director strategic alliance for Pepsico Latin America.
"Cranberries and super foods, in general, are a thriving, growing category with a lot of players coming in. Ocean Spray, in some way, shape or form, has had presence in these categories, but lacked a local partner that could really take them to the next level," he explained.
He said for PepsiCo, the alliance was part of his company's strategy to satisfy consumers' tastes for healthier products.
"Pepsi, for 20 years, has been in a transformation journey going from a fizzy-centric company, with brands such as Pepsi and Sierra Mist, to acquisitions, partnerships and alliances with brands like Ocean Spray, the acquisition of Gatorade and Tropicana, expanding our portfolio and diversifying our beverage options.
"Fifteen years ago, a quarter of PepsiCo sales were products outside of the segment. Today, more than 50 per cent of our sales come from non-carbonated beverages. For the region, Cranberry is a growing, thriving flavour in that segment and we are just there to capture some strong growth in juice. We have existing positions in juice; we have a 100 per cent coconut water in Brazil, Tropicana across many markets in Latin America as well as through our bottling partners."
The regional alliance between the two major beverage companies would see them collaborating on the development of new cranberry and blueberry beverages across the region.
So far, the alliance has produced five formulas, one of which is Flavour Splash cranberry water, which was launched in Jamaica in September. Cranberry classic, cranberry light and cranberry grape juices were expected to roll out in Central America last month.
Jamaica and T&T are the largest markets for Ocean Spray in the Caribbean, while Mexico is the largest in Latin America.