The Beverage Partners Worldwide joint venture offers tea, in particular Nestea, in Canada and Europe. But Nestlé says that, with the evolution of the RTD market, it is the right time for it to develop Nestea independently.
The partnership has been in place since 2001, but will end on January 1, 2018.
Nestlé is granting Coca-Cola the licence to manufacture and distribute Nestea in Canada, Spain, Portugal, Andorra, Romania, Hungary and Bulgaria. Coca-Cola will no longer produce or distribute Nestea in the other countries that are currently part of the joint venture.
Nestlé manages the Nestea brand in the US and several other countries. It will also manage the brand in all European countries that are not covered by licensing agreements.
Nestlé identifies the move towards healthy hydration in the overall RTD category, eyeing up the potential of the $4.5bn RTD tea sector. Earlier this year it unveiled its revamped Nestea products in the US, including an overhaul of the brand’s visual identity and the launch of new reformulations and a premium product line.