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.
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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The World Market for Confectionery Products