PepsiCo has formed an alliance with Ocean Spray Cranberries for the manufacture and distribution of fruit-based drinks in Latin America.

Through the agreement, announced today (17 January), PepsiCo will have the exclusive rights to manufacture and distribute a portfolio of cranberry and blueberry-based beverages through its Latin America drinks division. The two firms will share marketing responsibilities for the products and will collaborate on product innovation.

PepsiCo has bottled Ocean Spray's juice drinks in the US since 2006. PepsiCo's president of Latin America beverages, Luis Montoya, said: "We see tremendous opportunities to grow our beverage business in emerging markets throughout Latin America, and we continue to take steps to strengthen our brand portfolio through product innovation, marketing and strategic partnerships."

"Ocean Spray is already a PepsiCo partner in the US, and we believe this ... positions us well to continue to gain share of the growing juice category," he added.

The Latin America alliance between PepsiCo and Ocean Spray includes countries in the Caribbean, Central America and South America and has a term of 20 years. Financial terms of the transaction were not disclosed.