Sunny Delight and Pringles maker Procter & Gamble is expected to announce a new joint venture with William Wrigley, the chewing gum producer, reported the New York Times.

The partnership will see the joint development of a new line of Crest chewing gums. Essentially a distribution agreement, the deal sees Wrigley manufacture the gum using health care technology developed by scientists at Procter & Gamble. Wrigley will oversee distribution of the gum to supermarkets convenience stores, while P&G will handle delivery to drugstores. P&G has a large portfolio of household and personal care products.

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The New York Times said the companies had not disclosed terms of the agreement, but sources close to the talks said they estimated the deal could be worth about US$100m per year for the two companies.






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