Two Loops, How to combine them?

Hi all,

Within a custom post type and a custom taxonomy I have a list of posts, and if those posts are attributed to a custom taxonomy then they are bubbled up in to an accordion style nested list.

The goal is to have the following type of list

Product A
Product B
Product Tax
Product C
Product D
Product E
Product Tax 2
Product F

I have created two loops and it’s very close, but I can only list the products, and then the taxonomies with the products. I can’t find a way to bubble them all up in to one array and spit them out alphabetically.

Here is my loop:

<?php 
  //loop1
  $query1 = new WP_Query( array( 'post_type' => 'product_info', 'order' => 'ASC', 'orderby' => 'title', 
  'tax_query' => array(
        array(
            'taxonomy'  => 'need_cat',
            'terms' => $term_ids,
            'field' => 'term_id',
            'operator'  => 'NOT IN'
          )
      ),
  ));

  //loop2
  foreach($terms as $custom_term) {
      wp_reset_query();
      $args = array('post_type' => 'product_info',
          'tax_query' => array(
              array(
                  'taxonomy' => 'need_cat',
                  'field' => 'slug',
                  'terms' => $custom_term->slug,
              ),
          ),
       );

       $loop = new WP_Query($args);
       if($loop->have_posts()) {
          echo '<li class="productCat toggle">'.$custom_term->name;
          echo '<ul>';
          while($loop->have_posts()) : $loop->the_post();
              echo '<li><a href="'.get_permalink().'">'.get_the_title().'</a></li>';
          endwhile;
          echo '</ul></li>';
       }
  }

  /* Restore original Post Data */
  wp_reset_postdata();
?>

after this i then just do a simple loop for my $query1 posts.
any help is really appreciated