Atlanta – Coca-Cola is free to cut its own path through the ready-to- drink coffee market under a reformulated partnership with Nestlé announced Thursday.
Coke and Nestlé have worked together for 15 years to produce and market canned and bottled teas that consumers crack open and drink on the spot. Now, the companies will go their separate ways when it comes to coffee and so-called red, white and green teas, which are the rage in some countries but have yet to make their mark in the United States.
The Coke-Nestlé joint venture, Beverage World Partners, will continue to develop and market black-tea products. The 50-50 partnership also will continue marketing its new “calorie-burning” green tea, Enviga, which hit New York City and Philadelphia on Thursday.
Industry-watchers say the revised deal will allow Coke to develop new coffee and tea products faster and avoid having to split the profits.
“It gives each company the unfettered ability to compete in the marketplace individually and against each other,” said John Sicher, publisher of Beverage Digest, an industry newsletter.
One of Coke’s most popular drinks in Japan is a ready-to-drink coffee called Georgia. Under the agreement with Nestlé, Coke cannot bring something like Georgia coffee to the U.S. without going through the partnership.
