“Intense competition between Pepsi and Coca-Cola has characterized the soft-drink industry
for decades. In this chess game of giant firms, Coca-Cola ruled the soft-drink market throughout the 1950s, 1960s, and early 1970s. It outsold Pepsi two to one. But this was to change. Then the chess game, or “war,” switched to the international arena, and it became a “world war.”

It’s one of the biggest and most expensive marketing battles, the proverbial Cola Wars and the rivalry between the two brands are legendary. Pepsi and Cocoa Cola have been battling for world
domination of the cola market for years.

When Pepsi and Ocean Spray Cranberries, Inc. announced that they had formed a strategic alliance in Latin America and by extension the Caribbean, it was clear that things would not be the same for
Wisynco who bottle and distribute Coca Cola. As part of the alliance, PepsiCo will have exclusive rights to manufacture and distribute a portfolio of cranberry- and blueberry-based beverages through its Latin America Beverages division with the companies agreeing to share marketing responsibilities for the products and intend to collaborate on product innovation.

PepsiCo and Ocean Spray have enjoyed a successful business relationship in the U.S. since 2006, when Ocean Spray’s single-serve juices and juice drinks entered the PepsiCo bottling system.  As a result of this relationship, which utilizes PepsiCo’s market leadership and expertise in the convenience and gas (C&G) channel, Ocean Spray has earned a five percent share of the C&G
single-serve juice market and grew volume by 20 percent in 2011.

If recent comments by Pepsi co and Ocean Spray executives are anything to go by the prospects are not very bright for Wisynco.

“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,” said Luis Montoya, President of PepsiCo’s Latin America Beverages Division.  “Ocean Spray is already a great PepsiCo partner in the U.S., and we believe this will be a winning combination for Latin American consumers and customers.  It positions us well to continue to gain share of the growing juice category.”

“We are eager to continue building on our successful partnership with PepsiCo, as it will help us expand consumer access to Ocean Spray products in important international markets like Latin
America,” Ocean Spray’s COO of Global Partner Operations, Stewart Gallagher, said. “We believe this is a great opportunity to further promote and deliver the health and nutrition benefits of the cranberry to consumers in Latin America.”

The Latin America alliance between PepsiCo and Ocean Spray includes key countries in the Caribbean, Central America and South America and has a term of 20 years.

So what are the odds of PepsiCo allowing Wisynco, who bottle and distribute Coca Cola and a major competitor in all categories, to continue manufacture and distribute co-branding of its proprietary brand Wata with Ocean Spray to produce a line of flavored-water products? BM