Tuesday, January 17, 2012

Latin America - PepsiCo and Ocean Spray Cranberries Form Strategic Alliance

Uploaded by on Jan 17, 2012
PepsiCo (NYSE:PEP) and Ocean Spray Cranberries announced Tuesday they have formed a strategic alliance in Latin America. As part of the deal, PepsiCo will have 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.

President of PepsiCo's Latin America Beverages Division Luis Montoya said, "We see tremendous opportunities to grow our beverage business in emerging markets throughoutLatin America, and we continue to take steps to strengthen our brand portfolio through product innovation, marketing and strategic partnerships. Ocean Spray is already a great PepsiCo partner in the U.S., 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."

PepsiCo (NYSE:PEP) has potential upside of 7.3% based on a current price of $64.98 and an average consensus analyst price target of $69.75.

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