Nestlé has closed an agreement with Damm to produce, market, and distribute Nestea in Spain starting on January 1, 2025, once its contract with Coca Cola concludes, from which the popular tea drink was born three decades ago. Therefore, from now on, the Catalan brewery will be responsible for producing the entire range of Nestea flavors and formats "under the same quality standards and with an identical organoleptic profile that have established this drink as the favorite of consumers in the iced tea category," as explained by the Swiss multinational in a statement. However, the news raises questions about what will happen to the taste of Nestea, as the original formula is owned by Coca Cola, which has now introduced its own brand, Fuze Tea.
This popular drink has been served in bars and sold in supermarkets since 1993, the year when the Swiss multinational and the beverage giant joined forces. An agreement that ended in 2017 when the joint venture Beverage Partners Worldwide (BPW) was dissolved, created in 2001 and in which both companies participated equally. However, in some countries, including Spain, an extension of the contract was signed until December 31 of this year.
Last October, alarms went off when both companies announced the end of the commercial agreement, leaving the future of Nestea uncertain. Although the agreement granted ownership of the brand to Nestlé, Coca Cola remains the owner of the cold tea drink formula. The same formula is what the American company has implemented in its new ready-to-drink tea beverage, Fuze Tea. Now it remains to be seen which formula Nestlé will use after sealing its agreement with Damm. In fact, the brewery has already started producing the first units of Nestea, which will be available to consumers at regular points of sale starting January 1. "We are convinced that this alliance with Nestlé will strengthen the Nestea brand in the non-carbonated beverage segment, which has good expectations for future growth," said the general director, Jorge Villavecchia, who will be able to produce over 500,000 hectoliters per year of this drink. "This new stage will be a complete success, and our consumers will be able to continue enjoying their favorite tea brand," he assures.