Nestlé S.A. and The Coca-Cola Company announced earlier this month that they will focus the geographic scope of their ready-to-drink tea joint venture, Beverage Partners Worldwide (BPW), on Europe and Canada.
In Taiwan and Hong Kong, The Coca-Cola Company will enter into a license agreement with Nestlé for the Nestea brand, the company reported in a press release. In all other territories the joint venture will be phased out in a transition to be completed by the end of 2012 subject to any regulatory approval.
In addition, the report noted that the current Nestea license granted by Nestlé to The Coca-Cola Company in the United States will terminate at the end of 2012.
Over the past 10 years, BPW has delivered consistent growth to its parent companies and has expanded the Nestea brand across Europe, Canada and other markets.
The press release stated that 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.
Both parent companies will be free to independently explore and maximise opportunities for growth in the ready-to-drink tea category in other markets.
Beverage Partners Worldwide, a 50-50 joint venture focused on the ready-to-drink tea category held by Nestlé S.A. and The Coca-Cola Company, was created in 2001, following a period of 10 years during which Nestlé and The Coca-Cola Company cooperated in a joint venture called Coca-Cola and Nestlé Refreshments.