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Nestle, Coca-Cola to end tea joint venture

Published 06 March 2017

Nestlé and The Coca-Cola Company have decided to end their tea joint venture (JV), Beverage Partners Worldwide (BPW), after more than 15 years of operation.

The 50-50 ready-to-drink tea JV will be dissolved from 1 January 2018.

BPW was created in 2001 to sell Nestea, its ready-to-drink (RTD) brand. But, the brand has been facing fierce competition of the joint venture between Unilever and PepsiCo, Lipton.

Nestle stated that the ready-to-drink tea market has evolved and it is planning to develop Nestea as an independent brand to deliver on consumers’ changing needs in a rapidly expanding $4.5bn RTD market.

Coca-Cola will retain the license for producing and distributing Nestea in Canada, Spain, Portugal, Andorra, Romania, Hungary and Bulgaria.

Coca-Cola will no longer produce or distribute Nestea in other countries that are presently part of the JV.

Nestlé already manages the Nestea brand in several countries, including the US, through its Nestlé Waters division.

As part of the new agreement, Nestlé Waters will also manage Nestea in all the European countries that are not included in the license agreements.

Recently, Nestlé has revamped its Nestea brand to make fruit-flavoured teas that are claimed to contain real sugar and stevia extract while containing no high fructose corn syrup and with no artificial colours and flavours and no GMO ingredients.

Image: Nestle and Coca-Cola to end their tea joint venture, Beverage Partners Worldwide. Photo: Courtesy of The Coca-Cola Company.