The world's largest food group, Swiss-based Nestlé, and Coca-Cola are to boost a long-standing joint venture by adding new brands and entering new markets. The 50-50 joint venture is to be run as an independent entity from headquarters in Zurich.
On top of the venture's existing tea and coffee brands - Nestea and Nescafé - Coca-Cola is to add its Tian Yu Di and Yang Guan tea businesses while Nestlé will hand over control of its Belte tea business. These drinks are sold both hot and cold, through machines and retail outlets.
A Nestlé spokesman said the ready-to-drink beverage sector was growing faster than the overall beverage sector.
The two companies said in a statement that the joint venture, now called "Coca-Cola and Nestlé Refreshments" (CCNR), would be renamed "Beverage Partners Worldwide" (BPW).
CCNR was formed in 1991, operating in 24 countries and has a strong presence in the ready-to-drink tea market.
The statement said BPW intends to build on this success, tapping into the growth potential of ready-to-drink coffee, tea and herbal teas.
The Nestlé spokesman said the increased brand range should result in an extra 1.5 billion litres of sales per year. He declined to give financial details.
BPW also intends to expand its geographical reach by entering new markets.
swissinfo with agencies