Nestlé and Coca Cola part ways « Euro Weekly News

Nestlé and Coca Cola part ways in Nestea case

Nestlé and Coca Cola part ways in Nestea case. Euro Weekly News.

Fuze tea forces Nestea out of the sugary market. Credit: Tepe's Minimarkt, Facebook.

Nestlé and Coca Cola have come to an amicable separation agreement over a partnership that has lasted 31 years concerning their sugary offspring, Nestea.

In 1993, Coca-Cola and Nestlé tied the knot with the birth of the refreshing cold beverage Nestea, an incredibly sweet mix of tea and sugar. What started as a lemony-flavoured soft drink later added peach, mango, and passion fruit to the irresistible pre-energy drink commercial arsenal.

The new Fuze Tea was the straw that broke the strained relationship. A product devised by the Coca-Cola whizz kids that would compete head to head with the originally successful Nestea. It was Carlos Martín Carrión, the director of Coca Cola Iberia, that announced the divorce planned for December 31.

Although Nestea already competed in the Spanish market against Lipton, owned by PepsiCo, the indignation of the Nestlé board of directors was clear. There’s no room for 3 in this relationship. 

The big new player on the high-sugar tea refreshments, Fuze Tea

Fuze Tea is already being pushed in over 90 countries and has been steadily growing in Spain, with a 6.3% increase in the iced tea category over the past five years. Coca Cola aims to double this growth by 2030, expanding Fuze Tea’s reach to over 225,000 points of sale across Spain. The brand plans to compete directly with rivals like Lipton, and its strategy will focus heavily on appealing to younger consumers, and no doubt sugar hunters, who are more open to trying new flavours and breaking their beverage trends.

With tea already in the mind’s eye of the consumer as a ‘healthy drink,’ the canned Nestea refreshment version more often than not contains just as much sugar as a can of Coca Cola. According to myfooddata.com, Fuze Tea is a whole 4% lower in sugar than both Coke and Nestea, who are level pegging.

Of course, as a Brit, this EWN writer is left wondering why people can’t just make a regular cup of cha and have done with the issue.

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Adam Woodward

Passionate about music, food and the arts. After being completely immersed in the Spanish way of life for 25 years, I now share my knowhow and experience with you.

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