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GLENDALE, Calif. - The Nestle USA - Beverage Division and Ocean Spray Cranberries Inc. announced on Friday that they have formed a long-term strategic operations alliance that will enable both companies to significantly increase manufacturing and supply chain efficiency.
"Ocean Spray shares many of our same business values, in particular their commitment to high-quality manufacturing standards," said Mike Mitchell, president and general manager of Nestle USA - Beverage Division. "By capitalizing upon each other's best practices, we feel both Nestle and Ocean Spray will be better equipped to grow in this highly aggressive juice category in which we compete."
Within the strategic operations alliance, Nestle will transition over time its manufacturing of Libby's Juicy Juice and Libby's Kerns Nectars to Ocean Spray facilities. The companies will also pursue collaborative procurement of common raw and packaging materials, and common operating supplies, as well as shared logistics to increase process efficiency across the supply chain.
With Ocean Spray leading the category of shelf stable juices and Libby's Juicy Juice being the leader in 100% juice for kids, the operations alliance is expected to create added value of mutual benefit. The strategic operations alliance will be governed by a leadership team and an executive operating committee, both composed of members from each company.