Nestle and Coca-Cola boost drinks venture<\/p>\n
ZURICH (Reuters): Swiss food group Nestle SA and U.S.
\nbeverages concern Coca-Cola Co said on Tuesday they would boost
\ntheir coffee and tea joint-venture partnership by adding new
\nbrands and entering new markets.<\/p>\n
The 50-50 joint venture would be run as an independent entity
\nfrom headquarters in Zurich.<\/p>\n
Marcel Rubin, spokesman for Nestle, said the ready-to-drink
\nbeverage sector was growing faster than the overall beverage
\nsector but he declined to give details.<\/p>\n
On top of the venture's existing Nestea and Nescafe brands,
\nCoca-Cola would add the Tian Yu Di and Yang Guang tea businesses
\nwhile Nestle would add the Belte tea business. These beverages
\nare sold both hot and cold, in machines and in shops.<\/p>\n
In a joint statement, the companies said the venture, now
\ncalled Coca-Cola and Nestle refreshments (CCNR), would be renamed
\nBeverage Partners Worldwide (BPW).<\/p>\n
BPW would function as an entrepreneural unit dedicated to
\ntapping the growth potential of emerging beverage segments, in
\nparticular ready-to-drink coffee, teas and beverages with a so-
\ncalled healthful positioning, which includes herbal teas.<\/p>\n
CCNR was formed in 1991, operates in 24 countries and is
\nstrong in the ready-to drink tea category.<\/p>\n
With an increased brand range, BPW would have a volume base of
\n250 million cases. The Nestle spokesman said this was some 1.5
\nbillion litres. He declined to give financial details.<\/p>\n
BPW would also focus on expanding its geographical reach,
\nlooking to enter new markets -- outside Japan -- with new and
\nexisting products.<\/p>\n
\"Beverage Partners Worldwide will operate with the full
\ncommitment of its two equity partners, but with the innovative
\nspirit, speed and culture of a start-up company,\" Nestle
\nexecutive vice-president Carlos Represas said.<\/p>\n
The Beverage Partners Worldwide venture would have a
\nmanagement team of about 60, led by chief executive Hans
\nSavonije, a Dutch national who would be based in Zurich.<\/p>",
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