Coca-Cola And Nestlé Going It Alone In US And Asia

US soft drinks giant The Coca-Cola Company and Swiss food giant Nestlé are parting ways in the US and Asia. Both companies have reportedly disbanded their long-running Beverage Partners Worldwide (BPW) joint venture to distribute iced tea in the US and Asia. By scaling back the scope of their BPW partnership, Coca-Cola and Nestlé would have the freedom to pursue growth independently in the high-growth ready-to-drink (RTD) tea market. Given the companies' massive financial clouts and willingness to innovate, we see a strong cause for optimism in the companies' future prospects following the end of their joint venture in the US and Asia by 2012.

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