Coca-Cola Co. and Switzerland‘s Nestlé S.A. have agreed to narrow the geographic focus of their ready-to-drink tea joint venture, Beverage Partners Worldwide.
They will limit the sale of the NESTEA brand to Europe and Canada as the 10-year-old joint venture is phased out in the rest of the world by the end of this year.
Coca-Cola will sell NESTEA in Taiwan and Hong Kong through a separate licensing agreement. The Atlanta-based beverage giant’s contract to sell the brand in the U.S. will also run out at the end of 2012.
Company leaders on both sides feel that the partnership will be better served by concentrating on the markets where it has seen the most success, according to a news release.
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