On Friday, January 6th, Nestlé S.A. and the Coca-Cola Company announced an agreement regarding changes to the scope of its joint venture, Beverage Partners Worldwide (BPW). In the United States, the current Nestea brand license granted by Nestlé to The Coca-Cola Company will terminate on December 31, 2012, at which time Nestlé Waters North America Inc. will assume management responsibility for the Nestea business.
The details about the transition plan are still being determined by the parent companies and BPW and will be communicated appropriately. For now, Nestea will continue to be sold and marketed through the Coca- Cola system until a US market transition plan is determined.
Since our company’s founding in 1976, Nestlé Waters North America has been very successful in building a world class beverage company. Anchored by our portfolio of leading bottled water brands, including Nestlé Pure Life, our line-up of regional spring waters and our international premium brands, we have the most powerful healthy hydration portfolio in the beverage industry.
We are very excited about the prospects of building on the success of our beverage expertise with the addition of Nestea to our rapidly expanding ready-to-drink tea business, which includes the Sweet Leaf and Tradewinds brands. Nestea is a well-known, trusted and iconic brand in the U.S. with high awareness, broad consumer appeal, and deep retail channel penetration.
We are all excited about the future of having Nestea in our portfolio, beginning January 2013. But, it will take time and patience for this transition to be completed. In the interim it is critical that we all stay focused on building our foundation in the RTD tea category by flawlessly executing the 2012 plans we put in place for Sweet Leaf and Tradewinds.