The beverage division of Glendale, California-based Nestlé USA and growers’ cooperative Ocean Spray Cranberries have announced that they have formed a long-term strategic operations alliance that will enable both companies to significantly increase manufacturing and supply chain efficiency, while maintaining high-quality products for their respective juice businesses.
Mike Mitchell, President and General Manager of the Nestlé division, commented: “Ocean Spray shares many of our same business values […] by capitalizing upon each other’s best practices, we feel both Nestle and Ocean Spray will be better equipped to grow in this highly aggressive juice category in which we compete.”
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Within the strategic operations alliance, Nestle will transition over time its manufacturing of Libby’s Juicy Juice and Libby’s Kerns Nectars to Ocean Spray facilities. The companies will also pursue collaborative procurement of common raw and packaging materials, and common operating supplies, as well as shared logistics to increase process efficiency across the supply chain.
Ocean Spray President and COO Randy Papadellis added: “This alliance between two great companies creates a powerful synergy.
“By bringing Nestle’s juice production into our plants and joining forces with them on purchasing and distribution, we will establish an economy of scale that will boost the profitability of both companies.”
With Ocean Spray leading the category of shelf stable juices and Libby’s Juicy Juice being the leader in 100% juice for kids, the operations alliance is expected to create added value of mutual benefit. The strategic operations alliance will be governed by a leadership team and an executive operating committee, both composed of members from each company.
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By GlobalData
