Cold tea in Spain has been associated with a brand for many years: Nestea. There are other variants available and supermarkets also have this product with their white label. But no one has been so successful; at least until now. And once both references are on the market, the fight for distribution on all channels will be essential.
On October 7, news emerged about the future of Nestea: Coca-cola and Nestle (owner of the brand) ended their distribution agreement, and the future of Nestea was up in the air. This situation had already been announced by the general director of the refreshing drink, Carlos Martín, two weeks before, but curiously it had had no impact.
In fact, at that time, Coca-Cola announced that it would launch Fuze Tea on the market. A sort of new Nestea, but which would be marketed under that brand and with its own identity signs. The general director of Coca-Cola Iberia stated on the occasion of the launch that they are confident that “Fuze Tea will have the same success in Spain as in the other 90 countries in which it is present. “The launch of Fuze Tea Sabor Original expands the global brand in our market and allows us to reach new moments of consumption and promote a category of great importance.”
What no one expected was that there would be a huge media stir about the situation. So much so that Nestlé had to step up to defend its brand and its interests.
The company claimed that “Nestea will continue to be marketed in our country, once the current contract in force between Nestlé and Coca-Cola ends. Thus, the consumer will be able to continue finding Nestea in their usual stores also from January 1, 2025 and will be able to continue enjoying their favorite brand, market leader, in their favorite flavors as until now.
The controversy was afoot, and a comment from the company noted that the situation had, from now on, taken a path of rivalry between brands. “In this way, Nestlé wants to put an end to the erroneous information that has emerged these days regarding the future of its marketing, the origin and intentions of which it does not know.”
The problem for Nestlé, however, was still present. While Coca-Cola touted the benefits of Fuze Tea, and hinted that its powerful marketing machinery would support this new product, Nestea needed logistical means to reach all locations. Nestlé urgently needs to find a distribution partner.
Then Damm appeared.. The group, known for its beer, is studying an agreement with Nestlé “to manufacture and distribute the ready-to-drink tea brand Nestea in Spain,” as ABC has been able to confirm. At the moment none of the companies want to offer details about the operation. Thus, the only certainty is that starting in January there will be two brands of cold tea. But the controversy is far from over.
From those around Coca-Cola they remember that “Fuze Tea Sabor Original uses the same formula, whose property is exclusive to The Coca-Cola Company, that consumers already know and love”, and as this confrontation goes, from the mythical soft drink company remember that “the Fuze Tea Original Flavor range uses the same original formula of the tea drink that you already know.” Now it will be the cold tea lovers who give their verdict. The possession of the roots and origin of things are as ephemeral as the tastes of consumers.
The great rivalry
If the agreement between Nestlé and Damm finally goes ahead, and Nestea once again has a new life, the fight with the new Fuze Tea will be very intense on all channels. There is room for everyone in supermarkets, and it is expected that both brands can coexist.
However, In restoration it is different. Consumers will have to choose, and that may cause businesses to decide to have a single reference based on sales. At the moment, the fight is born unequally, but Coca-Cola will put pressure.
Nestea has been a consolidated brand for years. Meanwhile, Coca-Cola’s new product, which in principle is performing well in other regions, remains an unknown as to how it will work.
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