Coca-Cola and Nestle Look To New Markets For Alternative Soft-Drinks

Food & Drink Weekly, Feb 5, 2001

Coca-Cola Co., Atlanta, is expanding a 1 0-year-old joint venture agreement with Nestle SA to tap new markets in ready-to-drink teas, coffees and health-oriented beverages. A new unit, to be called Beverage Partners Worldwide and be based in Zurich, Switzerland, will build on a joint venture between the two companies formed in 1991, which markets Nestea Iced Tea, Nescafe and other brands in 24 countries, including the U.S.

The unit will immediately expand the existing brands' availability to 16 additional countries, excluding Japan, and also will develop new offerings in the herbal beverage sector and in beverages with a "healthful positioning".

Coke also will add two tea brands that it markets in China to the joint venture's brand lineup. The step is part of an overall effort to extend the beverage giant's portfolio beyond its core of carbonated soft drinks into beverages whose sales are growing more quickly, such as teas and juices.