Nestlé and The Coca-Cola Company have reached final agreement on their Beverage Partners Worldwide (BPW) joint venture

Tuesday, 27. March 2007 18:02



Vevey, March 27, 2007 - Nestlé and The Coca-Cola Company today
announced they have reached final agreement on refocusing the
activities of their Beverage Partners Worldwide (BPW) joint venture.
The agreement, which is subject to certain regulatory approvals and
is expected to close by 30 April 2007, is a refined version of an
earlier understanding reached in November 2006.
Under the terms of the agreement, BPW will cover the total
ready-to-drink tea category worldwide except in the US and Japan. In
this connection, Nestlé has licensed its Nestea and Enviga brands to
The Coca-Cola Company in the US and to BPW for the rest of the world.
As a result, both companies will be free to develop or acquire
additional tea brands to compete on the US and Japanese markets,
while BPW will be able to do the same in the rest of the world, to
compete with other market players.
As agreed in November 2006, coffee will no longer be part of BPW's
business and, consequently, Nescafé ready-to-drink coffee will be
returned to Nestlé, and both Nestlé and The Coca-Cola Company will be
free to compete in coffee beverages and non-tea functional beverages
worldwide.
"A joint venture focused on the total ready-to-drink tea category,
excluding the US and Japan, provides an opportunity to optimise value
for all stakeholders," said Leslie Novos, CEO of BPW. "The redefined
scope affords BPW the opportunity to grow existing and new brands
consistent with a leadership agenda outside the US and Japan."
Beverage Partners Worldwide (BPW), a fifty-fifty joint venture held
by Nestlé and The Coca-Cola Company, was created in 2001 following a
period of 10 years during which Nestlé and The Coca-Cola Company
cooperated in a joint venture called Coca-Cola and Nestlé
Refreshments (CCNR).

Contacts:
Media: François-Xavier Perroud Tel.: +41-21-924 2596
Investors: Roddy Child-Villiers Tel.: +41-21-924 3622



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