Nestle and The Coca-Cola Company have agreed to dissolve their tea joint venture Beverage Partners Worldwide (BPW) as of the start of 2018, Nestle announced on Friday.
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Created in 2001, BPW offers ready-to drink tea, in particular Nestea, in Canada and Europe. "The ready-to-drink tea market has evolved, and Nestle believes the time is right to develop Nestea independently," it said in a statement.
Nestle is granting Coca-Cola a license to manufacture and distribute Nestea in Canada, Spain, Portugal, Andorra, Romania, Hungary and Bulgaria. The Nestle Waters division, which manages the Nestea brand in several countries including the United States, will also manage Nestea in all European countries not concerned by the licensing agreements, it added.
(Reporting by Michael Shields; Editing by John Revill)