News briefs: Nestle tea, Coca-Cola

Coca-Cola may expand in​ Hungary​​ Coca-Cola beverages Hungary has reportedly inaugurated a new bottling line at its Dunaharaszti plant in the country, according to local sources. The company, which is part of the Coca-Cola Hellenic Bottling Group, has invested €23.6m in extending capacity at the site for the production of preservative-free ice teas and fruit drinks, according to business publication Világgazdaság.​​The deal is expected to make the group less reliant on imports of the products from neighbouring markets, the report states. ​Nestle may consider tea partnership ​​Nestle and Japan-based drink maker Suntory are expected to join forces in order to supply green tea-based drinks on the US market, according to press reports. Both companies are looking to tap growing demand in the US for beverages that are perceived to have a healthier image in the eyes of consumers, by working together to push the tea-derived drinks onto the market, according to Reuters news agency. The deal is expected to be in place this May, with Nestle claiming exclusive rights to sell its Iemon beverage brand, the report says.​​Successful completion of the deal could open up a lucrative market for Nestle within the US. The US market for tea is expected to double over the next five years, boosted by a growing interest in wellness, according to Packaged Facts. ​The group estimate that sales for instant, leaf, liquid concentrate and ready-to-drink tea​ will reach nearly $15bn by 2012, compared to $7.4bn this year. The main driver behind this growth is the product's positioning within the good-for-you market, at a time when interest in health and wellness foods is continually increasing. According to Packaged Facts, tea's "all-natural halo"​ and its lower caffeine content than coffee or cola is one of the major attractions for consumers, particularly the older generation.