Farewell, Nesteya? Coca-Cola is betting on a new iced tea and leaving its future in doubt

Is Spain saying goodbye to classic soft drinks in bars? It was in 1993 that Nestea appeared in supermarkets and hotels in Spain as a result of a commercial agreement between Coca-Cola and Nestlé. From the original lemon flavor we’ve moved on to a sugar-free version and some alternatives like peach, mango and passion fruit versions. Now his future is in doubt.

Coca-Cola Iberia director Carlos Martin explained in September that the contract it has with Nestlé expires on December 31. In the ready-to-drink tea market, its main competitor, other than private brands, is Lipton, owned by PepsiCo. And now? The company’s bet is on Fuze Tea, Coca-Cola’s global tea brand, a new product that arrived in Spain in May 2023 from the USA and is present in more than 90 countries.

In addition to the original flavor, the market will sell two variants: a “low-calorie” Fuze tea and a “sugar-free” version. Also flavors of passion fruit, mango and peach. By the end of the year, both brands will coexist on the market. Starting in 2025, Fuze Tea will be the only tea drink distributed by Coca-Cola. The company emphasizes that it will have the same taste and the same format.

Nestlé did not specify what will happen to Nestea from January 1. This change is a response to the two companies’ commitment to different strategies in the market. In 2017, Nestle and Coca-Cola agreed to end their iced tea joint venture after 16 years.