Click here to read the Spanish version.
Nestlé is in the final phase of negotiations to secure the production and distribution of its popular tea drink in Spain. The Swiss multinational is closing an agreement with the Spanish brewery Damm to take over these tasks once its contract with Coca-Cola, in force until December 31, comes to an end.
The Nestea formula, however, has generated some controversy. Coca-Cola claims that the recipe used in its Fuze Tea drink, with which it competes in this segment, is the same as the one used in Nestea and is exclusive property of the U.S. company. As of January 1, 2025, The Coca-Cola Company will continue to be the owner of this formula’, the soft drinks multinational confirmed to the newspaper Expansión.
Uncertainty about Nestea’s future arose when Coca-Cola announced that it would begin competing with its own Fuze Tea brand in the ready-to-drink tea category. However, Nestlé has guaranteed that the iconic drink will continue to be available from January 2025, although without specifying whether the product’s formula will change. In the meantime, the two companies are moving forward with the details of their agreement.
Coca-Cola has made flavor one of the pillars of its strategy in the launch of Fuze Tea, which is already available in Spain. The company has emphasized that the new product uses the ‘same exclusive formula’ as Coca-Cola, which could influence the perception of consumers who until now have been used to Nestea.
As of January 2025, Coca-Cola and Coca-Cola Europacific Partners (CCEP) will continue to offer the same flavor, but under the Fuze Tea brand, which will be produced at its plant in Valencia. Thus, Nestlé with Nestea and Coca-Cola with Fuze Tea will face each other in the competitive ready-to-drink tea market in Spain, although it remains to be seen if both products will maintain a similar flavor or if they will make a notable difference.
The agreement between Nestlé and Coca-Cola for the production and distribution of Nestea dates back to 2017, when the two companies decided to dissolve their joint venture, Beverage Partners Worldwide, created in 2001 to manage the brand globally.
