World beverage giants The Coca-Cola Co. and Nestlé earlier formed BPW, a 50-50 joint venture, in a move to pool their vast resources and know-how to create added business opportunities and accelerate growth of RTD tea, coffee, and functional beverages. This partnership draws strength from the experience of both Coca-Cola and Nestlé in brand development, product distribution, and systems and technical support.
BPW will leverage on The Coca-Cola Co.’s manufacturing, distribution, and marketing infrastructure to further grow RTD Nestea Iced Tea in the Philippines. Nestea in powdered format will remain with Nestlé Philippines Inc.
While Nestea already holds a very strong position in their respective markets, its RTD format is still underdeveloped. Avenues for growth would come from broadening distribution in supermarkets, convenience stores, and quick service restaurants.
Nestea, as the leader in the BPW portfolio, faces promising prospects, based on its worldwide performance, particularly in the US, Canada, Taiwan, Italy, Switzerland, and Spain.
In the Philippines, The Coca Cola Co.’s Non-Carbonated Beverages Business Unit (NCB) is spearheading efforts to market Nestea in fountains, and later on, in cans.
Joyce Misa, category manager for NCB’s teas and sports drinks, expressed a positive outlook for the partnership between Coca-Cola and Nestle as well as for RTD Nestea’s sales in the Philippines.
"Clearly, Nestea has an impressive track record of market-leading sales worldwide. Hopefully, its performance in the local market will be able to fulfill high expectations because studies show that the Philippines is also an ice tea country," she said.