Nestlé and Coca-Cola Co have announced plans to dissolve Beverage Partners Worldwide (BPW), their ready-to-drink joint venture, effective 1 January 2018.
The 50:50 JV was launched in 20017, and offers RTD tea (particularly the NESTEA brand) in Canada and Europe. Nestlé said that while BPW has “performed well”, the RTD tea market has evolved, and it believes “the time is right to develop Nestea independently”.
Nestlé will now grant Coca-Cola Co a license to manufacture and distribute NESTEA in Canada, Spain, Portugal, Andorra, Romania, Hungary and Bulgaria. Coca-Cola will not be part of NESTEA’s production or distribution in another other countries that are currently part of the JV. Additionally, the Nestlé Waters division will also manage NESTEA in all the European countries that are not concerned by the licensing agreements.