天美传媒

Coca-Cola and Nestl茅鈥檚 joint venture initially failed due to logistical and strategic issues but was relaunched in 2001 as Beverage Partners Worldwide, focusing on emerging beverages.

In March 1991, two of the largest and most successful multinational companies in the food and beverage industry, The Coca-Cola Company and Nestl茅, joined forces to create Coca-Cola Nestl茅 Refreshments Company (CCNR). The joint venture was expected to be among the most successful of its time.

The joint venture between Coca-Cola and Nestl茅

The new company's purpose was to manufacture and distribute ready-to-drink (bottled and canned) coffee products (Nescaf茅). Canned tea (Nestea) and chocolate drinks (Nestl茅) were also included in CCNR麓s plans, as possible future extensions of the product portfolio.

The Coca-Cola Company's participation consisted of access to its extensive bottler network throughout the world and to its corporate name. Nestl茅 contributed its trademarks, its existing coffee formula, and its production technology and process know-how. CCNR was structured as a 50/50 subsidiary, with equal share of profit and loss.

The love-hate relationship between the multinationals

Initially both sides showed a definite willingness to make the venture a success and did all that was necessary to achieve that. CCNR ran into difficulties, however, when disputes arose over distributors and distribution channels, top management compensation policies, a shift in focus from Nescaf茅 to Nestea, etc. The situation deteriorated until, in September 1994, the partners announced the dissolution of the joint venture. The agreement was that The Coca-Cola Company would continue to develop ice tea (with Nestl茅 licensing to them the brand name Nestea), while Nestl茅 would focus o颅n the ice coffee products.

In 2001, however, the two food and beverage giants announced the re-launch of CCNR, under the name of Beverage Partners Worldwide. The re-formed venture would function as an entrepreneurial unit targeting emerging beverage segments, particularly ready-to-drink coffee, teas, and beverages with a healthful positioning.

Why did the joint venture not work in 1991-1994? Was it likely to work any better in 2001? In the 5-case series entitled "" Professor Africa Ari帽o of 天美传媒 invites you to reflect o颅n these questions.