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Beverage Partners Worldwide

From Alfawiki
Beverage Partners Worldwide
Company typeJoint venture
IndustryBeverage
Founded1991
Defunct2018
Headquarters
Zurich
,
Switzerland
ProductsNescafé, Nestea, Enviga
ParentThe Coca-Cola Company and Nestlé

Beverage Partners Worldwide was a joint venture formed by The Coca-Cola Company and Nestlé, with its headquarters located in Zurich, Switzerland. Originally created in 1991 under the name Coca-Cola Nestlé Refreshments Company S.A., the partnership ended in 1994 due to conflicts involving organizational structure and distribution strategies. It was reestablished in 2001 and ultimately ceased operations in 2018. The venture's prominent products included Nescafé and Nestea.

History

The joint venture began in 1991 as a 50:50 owned subsidiary but encountered challenges related to distribution rights, executive remuneration, and changing product priorities, which led to its initial termination in 1994. It was revived in 2001 under the name Beverage Partners Worldwide (BPW). In 2006, BPW discontinued the Nescafé brand, which Nestlé resumed managing independently. That same year, BPW introduced Enviga, a beverage promoted for enhancing metabolism and aiding calorie burning; however, these health claims resulted in legal disputes and necessitated the removal of any weight-loss assertions.

Nestea was launched into the Indian market in 2010 but was pulled out by 2012 due to insufficient consumer interest. By that time, Nestea’s availability was primarily limited to the US, Europe, Canada, Taiwan, and Hong Kong. Distribution responsibilities were divided: Nestlé took over US distribution while Coca-Cola managed international markets. Nestlé maintained ownership of Nestea powder products and those for vending machines, whereas Coca-Cola controlled the distribution of glass and PET bottled versions.

BPW worked closely with several Coca-Cola bottling partners such as Coca-Cola European Partners, Coca-Cola Hellenic Bottling, Coca-Cola Refreshments Canada, Coca-Cola Amatil, Swire Coca-Cola Taiwan, and Swire Beverages.

By 2017, Nestea was sold across 48 countries. In March of that year, Nestlé and Coca-Cola reached an agreement to dissolve BPW effective January 2018, enabling Nestlé to pursue independent growth strategies for Nestea. According to the terms, Nestlé granted Coca-Cola licenses to produce and distribute Nestea within Canada, Spain, Portugal, Andorra, Romania, Hungary, and Bulgaria.

References