Ocean Spray to Tap Into Pepsi’s Distribution Network
LAKEVILLE, Mass. (AP) _ Ocean Spray Cranberries Inc. said Monday it would try to capitalize on a growing thirst for juice drinks by using Pepsi-Cola Co.’s distribution network of vending machines and convenience stores.
Ocean Spray will sell 11.5-ounce cans and 10-ounce bottles to Pepsi, which will distribute the beverages initially in southern California and Cleveland.
The agreement could be expanded if successful.
In addition, Pepsi-Cola hopes to work more closely with Ocean Spray in the future, possibly developing new products together, said Pepsi-Cola president Craig Weatherup.
Single-serving drinks represent roughly 10 percent of Ocean Spray’s sales, said Skip Colcord, a company spokesman. But Ocean Spray, better known for its bottled drinks in grocery stores, projects the single-serving segment will grow to 30 percent of its juice sales.
A statement said the single-serve drinks generate about $100 million in annual sales for Ocean Spray.
Pepsi-Cola, meanwhile, is phasing out agreements with two other juice brands, Motts and Welch’s, said Anne Ward, a Pepsi spokeswoman.
″The ultimate goal is to have Ocean Spray available wherever you buy Pepsi products,″ she said.
John Llewellyn Jr., president of Ocean Spray, said he was ″excited about the potential to create thousands of new sales opportunities for Ocean Spray products and to make our juices as widely available as Pepsi soft drinks.″
He said Pepsi has one of the most extensive systems in the country for distributing consumer products.
Colcord said the agreement not only would help Ocean Spray generate more single-serving sales, but also could increase grocery store sales by attracting more customers to Ocean Spray.