While the Beverage Partners Worldwide joint venture has performed well for more than 15 years, Nestle (NSRGY) and The Coca-Cola Company (KO) have agreed to dissolve the 50-50 ready-to-drink tea joint venture as of January 1, 2018.

Created in 2001, BPW offers ready-to drink tea, in particular Nestea, in Canada and Europe. The ready-to-drink tea market has evolved, and Nestle believes the time is right to develop Nestea independently. As part of this agreement, Nestle 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 Nestle Waters division, Nestle already manages the Nestea brand in several countries, including the United States. Following this new agreement, Nestle Waters will also manage Nestea in all the European countries that are not concerned by the licensing agreements.