The Coca-Cola Company in the Restructuring of its Joint Venture with Nestlé in the Tea Beverage Business

Cleary Gottlieb is representing The Coca-Cola Company in the restructuring of its joint venture with Nestlé SA, Beverage Partners Worldwide (BPW), which is active in the ready-to-drink tea beverage business. The geographic scope of the joint venture is being narrowed to provide focus on the sale of ready-to-drink tea in Europe and Canada. The parties will enter license agreements to continue to sell beverages in Taiwan and Hong Kong.

The agreement governing the terms of the restructuring was signed on December 23, 2011, and provides for a transition to the new geographical focus until the end of 2012 at the latest, subject to any regulatory approval.

Beverage Partners Worldwide, a 50-50 joint venture focused on the ready-to-drink tea category held by Nestlé S.A. and The Coca-Cola Company, was created in 2001, following a period of 10 years during which Nestlé and The Coca-Cola Company cooperated in a joint venture called Coca-Cola and Nestlé Refreshments.