Coca-Cola and P&G in new venture

A new partnership for a new snack and juice company

Coca-Cola and the consumer products group Procter & Gamble have formed a joint venture to set up a new juice and snack company.

Each company will own 50% of the new standalone venture, which has not yet been named.

The new venture will focus on developing and marketing innovative juice-based drinks and snacks on a global basis.

Don Short, who has worked for 24 years at Coca-Cola, will head up the new company as chief executive.

There will also be a board of directors drawn from both parent companies.

Annual sales of $4bn

In a joint statement, Coca-Cola and Procter & Gamble said that the new joint venture aims to have annual sales of $4bn from the start.

It is expected to add to the earnings of its two parent companies in the second year of being set up.

The new company will combine Coca-Cola's worldwide distribution, merchandising and marketing capabilities with P&G's research and development expertise.

The new company will take over existing Coca-Cola brands, such as Minute Maid, Five-Alive and Fruitopia.

P&G brings Pringles, Sunny Delight and Punica beverages to the new venture.