Coca-Cola and Nestlé end ready-to-drink tea joint venture
07 Jan 2012
Coca-Cola and Nestlé, two of the world's largest food and beverage giants, yesterday decided to end their joint venture, Beverage Partners Worldwide (BPW), to sell iced tea in the US and Asia and instead focus on selling ready-to-drink tea in Europe and Canada.
Vevey, Switzerland and Atlanta, Georgia-based Nestlé and Coca-Cola announced that they have agreed to focus the geographic scope of their ready-to-drink tea BPW, on Europe and Canada.
BPW, the 50-50 joint venture between the two giants, was created in 2001 to focus on the ready-to-drink tea category, following 10 years of partnership between both companies called Coca-Cola and Nestlé Refreshments.
BPW, which operates in more than 60 countries, will be phased out in a phased manner and be completed by the end of 2012, said Nestle in a statement.
In Taiwan and Hong Kong, Coca-Cola will enter into a license agreement with Nestlé for the Nestea brand, while the current Nestea license granted by Nestlé to Coca-Cola in the US will terminate at the end of 2012.
"Both partners believe a concentrated focus on Europe and Canada will accelerate the growth and bolster the market presence of BPW, where the joint venture is most effective," Nestle said in the statement.
"Both parent companies will be free to independently explore and maximize opportunities for growth in the ready-to-drink tea category in other markets."
BPW will also be terminated in India although Coca-Cola had earlier denied that the JV would be dissolved in the country.
The alliance did make any headway in the country although the venture planned to introduce Nestea iced tea in bottles nationwide in early 2011, but the product was only available in a few outlets in Mumbai.
