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Zumos Pascual and Refresco Iberia have signed a letter of intent to closely cooperate in juice and fruit drinks manufacturing and packaging in the Spanish market. It concerns the Zumos Pascual production plant in Palma del Río, Córdoba.

For both parties, this intended agreement brings advantages and new opportunities. Refresco is European market leader in private label fruit juices and soft drinks manufacturing and the sought collaboration would fit within its 'buy and build' strategy, enabling the company to build on and reinforce its market position in Spain.

The cooperation gives Zumos Pascual an opportunity to optimise capacity. Refresco would add additional packaging activities to the location providing employment stability in the local community and reinforce its market position in Spain.

Refresco will take on the majority of manufacturing activities, allowing Zumos Pascual to focus on the production of Not From Concentrateh fruit juice and the marketing of its own brand.

"Both Refresco and Grupo Leche Pascual share a clear focus on distinguishing quality, in terms of products, people and performance. I’m sure that an alliance between the two companies would have a positive impact on our employees, suppliers, and customers.

"Moreover, it will allow us to move forward in the creation and consolidation of the industrial sector in the region, guaranteeing employment stability,” said Teo Barredo, Managing Director of Zumos Pascual in Palma del Río.

"I'm confident that an agreement will be highly beneficial for both parties. Our companies are complementary: whereas Zumos Pascual has a strong brand focus, Refresco is not concerned with brand management at all and focuses solely on the quality of manufacturing and packaging.

"This gives Zumos Pascual the comfort they can count on a reliable industrial partner. The co-operation with Zumos Pascual is needed to offer capacity to the existing growth of Refresco Iberia and it will enable us to offer an extended product-portfolio under the same quality standards that have always characterized our company," said Dominique Luna, Managing Director of Refresco Iberia. * Terms of the intended agreement* Zumos Pascual’s plant in Palma del Río has a production capacity of over 100 million liters of fresh pressed orange juice (NFC). The factory employs over 100 people.

If the agreement between both companies is finally reached, Refresco will lease part of this factory – excluding the fresh fruit juices pressing area and activities – and will close a co-manufacturing contract to produce and pack Zumos Pascual juices and fruit drinks at the location at Palma del Río.

Also, Refresco will add additional manufacturing activities to the plant to supply other customers in the region. Finally the companies will agree that Refresco buys the yearly surplus of NFC produced by Zumos Pascual in Palma del Río.

Both parties expect the proposed agreement to be settled in the coming months.