Nestlé Goes it Alone with Ready-to-Drink Tea After Pulling Out of Coca-Cola Partnership

84d7d36a-3a25-4e95-9963-fd8fa5b5cc76articleimage.jpg

06 Mar 2017 --- Nestlé is pulling out of its ready-to-drink-tea partnership with Coca-Cola. After 15 years working as part of the Beverage Partners Worldwide (BPW) joint venture, Nestlé and Coca-Cola Company have agreed to dissolve the 50-50 venture as of January 1, 2018. 

The BPW was created in 2001 offering ready-to-drink tea including Nestea in Canada and Europe but now Nestlé wants to develop it independently. 

The move comes at a time when consumers continue to move away from sweetened bottled drinks due to concerns about health and the environment.

As part of this agreement, Nestlé is granting the Coca-Cola Company a license to manufacture and distribute NESTEA in Canada, Spain, Portugal, Andorra, Romania, Hungary and Bulgaria. In other countries that are currently part of the JV, The Coca-Cola Company will no longer produce or distribute NESTEA.

Through its Nestlé Waters division, Nestlé already manages the NESTEA brand in several countries, including the US. Following this new agreement, Nestlé Waters will also manage NESTEA in all the European countries that are not concerned by the licensing agreements.

The consumer trend of the ready-to-drink category is evolving towards healthy hydration. Delivering on consumers’ changing needs in a rapidly expanding US$ 4.5 billion ready-to-drink tea category, NESTEA already unveiled its new brand proposition for the US on 30 January.

The reinvention is aimed at enhancing the position of NESTEA in the rapidly expanding, US$4.5 billion ready-to-drink tea category. The new NESTEA, which includes completely new reformulations and a premium product line, is the first major overhaul of the iconic tea brand’s visual identity, packaging and product line in many years, and it embodies the simplicity and delicious tasting refreshment that today’s consumers demand.

To contact our editorial team please email us at editorial@cnsmedia.com

Related Articles

Business News

Palm oil: The “political” fallout in wake of Iceland advert ban

15 Nov 2018 --- Palm oil is in the spotlight once again but this time it’s about a banned Christmas advert which has been deemed “too political” to be screened on TV. Originally a Greenpeace campaign video, the ad was taken on by UK retailer Iceland to shine a light on the environmental devastation caused by palm oil producers and features the story of a displaced orangutan.

Food Ingredients News

Plant-based foods certification launched, Tofurky and Oatly items receive first recognition

15 Nov 2018 --- The Plant Based Foods Association (PBFA) has launched a new Certified Plant Based program in the US, touted as the first and only plant-based food certification in the world. Selected Tofurky and Oatly products are the first to receive certified status by NSF International, the certifying agency, who have teamed up with the PBFA. The Certified Plant Based protocol, focuses on plant-based alternatives to animal-based foods and specifies the criteria required to make a certified plant-based food claim, reports the PBFA.

Food Ingredients News

Givaudan: Untapped market exists for less sweet yet satisfying NPD

15 Nov 2018 --- Givaudan has launched a new approach to sugar reduction that delivers “fully satisfying, reduced-sugar products without added sweeteners.” The approach seeks to combine the use of a new proprietary sensory language, novel ingredients and an understanding of sweetness and satisfaction to deliver up to 50 percent reduction in sugar, while maintaining consumer preference. The sugar reduction challenge is about closing the gap and restoring the overall experience offered by “full sugar.” The move comes amid a more holistic approach from the leading supplier, as it increasingly looks beyond the concept of “flavor” alone towards a broader approach to overall “taste.”

Food Ingredients News

IMCD opens Food & Nutrition application lab in Germany

15 Nov 2018 --- Chemical and food ingredients distributor IMCD N.V. has expanded its technical capabilities with a new Food & Nutrition application laboratory in Hürth, Germany. With this latest facility, IMCD Food & Nutrition will seek to support customers’ technical needs, sharing detailed application knowledge of its comprehensive specialty ingredient portfolio from leading supplier partners, reports the company.

Food Ingredients News

UK and Ireland supermarkets to stock Vivera and Beyond Meat alternatives

14 Nov 2018 --- Meat alternatives are becoming more widely available, with Tesco branches in both the UK and Ireland soon to be stocking new plant-based products from Netherlands-based Vivera and the US-based Beyond Meat. Innova Market Insights has hotly tipped “The Plant Kingdom” as its number two top trend for 2019, reflecting how vegan inspired eating continues to go mainstream.

More Articles