Heinz to takeover Ocean Spray distribution from CCA
Ocean Spray has announced that, from March 2010, manufacturing giant Heinz will manufacture and distribute the Ocean Spray range of beverages and sauces in Australia.
Heinz will takeover from Coca-Cola Amatil who, via their subsidiary SPC Ardmona, began a three-year production deal with Ocean Spray in 2007.
The partnership will boost Heinz Australia’s share of the grocery ambient fruit juice/juice drink category to around 28% in the wake of last year’s Golden Circle purchase and offers Ocean Spray, which currently has 85% of the cranberry beverage market, new opportunities for product innovation and expanded distribution, the companies said.
The agreement covers Ocean Spray’s existing cranberry and other fruit juice drinks, cranberry sauces, Craisins sweetened dried cranberries and could extend to include new product formats in the future.
“Ocean Spray enjoys an excellent reputation in the United States where the growers’ cooperative has an 80 year heritage and is the number one brand in ambient juices and juice drinks. We are extremely pleased that we will soon be working with a company of a similar calibre in Australia. We believe that Ocean Spray will add another dimension to the Heinz business and provide a strong opportunity for growth,” Anne-Maree Ogilvie, Ocean Spray Regional Manager, Australia and New Zealand, advised.
“Australia is one of a handful of core growth markets for Ocean Spray International,” COO of Ocean Spray International, Stewart Gallagher, added. “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.”
Heinz Australia’s Sales Director, Michael Jones welcomed Ocean Spray into the catalogue of drink and sauce brands they market in the country including Golden Circle and Original Juice Company fruit juices, Heinz sauces and ketchup, and Cottee’s and Roses jams.
“The manufacturing capability of Heinz Australia – particularly following its acquisition of Golden Circle last year, which included juice making facilities in Queensland and Victoria – also provides Ocean Spray with excellent product innovation opportunities and capacity for growth in the Australian market,” he said.