Nestlé is pulling out of its ready-to-drink-tea partnership with Coca-Cola. After 15 years working as part of the Beverage Partners Worldwide (BPW) joint venture, Nestlé and Coca-Cola Company have agreed to dissolve the 50-50 venture as of January 1, 2018.

The BPW was created in 2001 offering ready-to-drink tea including Nestea in Canada and Europe but now Nestlé wants to develop it independently.

The move comes at a time when consumers continue to move away from sweetened bottled drinks due to concerns about health and the environment.

As part of this agreement, Nestlé is granting the Coca-Cola Company a license to manufacture and distribute NESTEA in Canada, Spain, Portugal, Andorra, Romania, Hungary and Bulgaria. In other countries that are currently part of the JV, The Coca-Cola Company will no longer produce or distribute NESTEA.

Through its Nestlé Waters division, Nestlé already manages the NESTEA brand in several countries, including the US. Following this new agreement, Nestlé Waters will also manage NESTEA in all the European countries that are not concerned by the licensing agreements.

The consumer trend of the ready-to-drink category is evolving towards healthy hydration. Delivering on consumers’ changing needs in a rapidly expanding US$ 4.5 billion ready-to-drink tea category, NESTEA already unveiled its new brand proposition for the US on 30 January.

The reinvention is aimed at enhancing the position of NESTEA in the rapidly expanding, US$4.5 billion ready-to-drink tea category. The new NESTEA, which includes completely new reformulations and a premium product line, is the first major overhaul of the iconic tea brand’s visual identity, packaging and product line in many years, and it embodies the simplicity and delicious tasting refreshment that today’s consumers demand.