AUS: Coca-Cola Amatil, Ocean Spray deal to end

By Blair Speedy | 18 November 2009

Heinz is set to take over the Australian manufacturing and distribution of Ocean Spray products from Coca-Cola Amatil, whose three-year production contract expires in March 2010.

The agreement covers Ocean Spray's existing cranberry and other fruit juice drinks, cranberry sauces and dried cranberries, and may be extended to include new product formats.

Heinz Australia, which in December 2008 acquired fruit processor Golden Circle, said the deal would lift its share of Australia's grocery ambient fruit juice/juice drink category to around 28%.

"Australia is one of a handful of core growth markets for Ocean Spray International," said Ocean Spray International chief operation officer Stewart Gallagher.

"We have had solid performance every year since our launch in 1995 and see this new alliance with Heinz as an opportunity to transform our business model and marketplace performance for years to come."

Sectors: Soft drinks, Water

Companies: Coca-Cola Amatil