KendoUI issue with nested template

The nested template product-template is not being rendered.

HTML

<link rel="stylesheet" href="http://cdn.kendostatic.com/2012.1.322/styles/kendo.common.min.css">
<link rel="stylesheet" href="http://cdn.kendostatic.com/2012.1.322/styles/kendo.default.min.css">
<script src="http://cdn.kendostatic.com/2012.1.322/js/kendo.all.min.js"></script>
<div id='listview'>
</div>

<script id="category-template" type="text/x-kendo-template">
<span>
     <span>${categoryName}</span>
     <div data-bind="source: products" data-template="product-template"></div>
</span>
</script>

<script id="product-template" type="text/x-kendo-template">
     <span data-bind="text: productName"></span>
</script>

<div id='list' data-bind="source: categories" data-template="category-template">
</div>

JavaScript

// Expect products to show up inside the listview like they do for the div tag

var viewModel = kendo.observable({
    categories: [{
        categoryName: "Food",
        products: [
          {
            productName: "Bread"
          },
          {
            productName: "Meat"
          }
        ]
    },{
        categoryName: "Drinks",
        products: [
            {
                productName: "Beer"
            },
            {
                productName: "Whiskey"
            }
        ]
    } ]
});



$('#listview').kendoListView({ 
    dataSource:{data:viewModel.categories},
    template: kendo.template($('#category-template').html())
});

kendo.bind($('#list'), viewModel)