Nestlé USA and Ocean Spray Form Strategic Operations Alliance

(Glendale, CA) The Nestlé USA – Beverage Division and Ocean Spray Cranberries, Inc., announced today that they have formed a long-term strategic operations alliance that will enable both companies to significantly increase manufacturing and supply chain efficiency, while maintaining high quality products for their respective juice businesses.

“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 Nestlé USA – Beverage Division. “By capitalizing upon each other’s best practices, we feel both Nestlé and Ocean Spray will be better equipped to grow in this highly aggressive juice category in which we compete.”

Within the strategic operations alliance, Nestlé 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.

“This alliance between two great companies creates a powerful synergy,” said Ocean Spray President and Chief Operating Officer Randy Papadellis. “By bringing Nestlé’s juice production into our plants and joining forces with them on purchasing and distribution, we will establish an economy of scale that will boost the profitability of both companies.”

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 comprised of members from each company.

Nestlé USA

For well over a century, Nestlé has been making the very best food and beverage products for families around the world. In the U.S., Nestlé’s well-known brands include: Nestlé® Toll House®, Nestlé® Nesquik(tm), Nestlé® Carnation® Coffee-mate®, Stouffer’s®, Stouffer’s® Lean Cuisine®, Nescafé®, Libby’s® Juicy Juice®, Buitoni®, Taster’s Choice®, Ortega®, PowerBar®, Nestlé® Crunch®, Nestlé® Butterfinger®, Wonka®, Nestlé®Drumstick®, Nestlé® IceScreamers, Nestlé® Crunch® and Butterfinger® ice cream bars, and Häagen-Dazs. Headquartered in Glendale, Calif., Nestlé USA had 17,300 employees and $8 billion in sales in year 2000 and is part of Swiss-based Nestlé S.A. – the world’s largest food company. For product news and media information, visit us at or <>.

Ocean Spray

Ocean Spray, a grower-owned cooperative, is the number one brand of canned and bottled juice drinks in the U.S., with fiscal 2001 gross sales of more than $1.3 billion. Formed in 1930, the cooperative is made up of 804 cranberry growers from Massachusetts, Wisconsin, New Jersey, Oregon, Washington, British Columbia and other parts of Canada, as well as 126 Florida grapefruit growers. The company employs some 2,200 people worldwide. Visit us at ###

Media Contacts:

Terri Haywood – 818.549.5023
Nestlé USA – Beverage Division

Chris Phillips – 508.946.7318
Ocean Spray Cranberries, Inc