Nestlé’s Nestea brand pulled out of Germany

Nestlé’s Nestea is leaving Germany, so shoppers will no longer see the iced tea brand in grocery stores there. The brand’s exit was revealed this week, and the products will only be around until the end of this month.

Nestea has to be removed from the shelves of retail outlets as the contract of Nestlé Germany with its distribution partner in the country has already expired. As a result, all of Nestea’s Iced Tea products must be sold off by the end of March since the license for the sale has come to an end.

The spokesman of Nestlé Germany refused to say why it has not renewed its agreement with the local distributor. The Nestea products being distributed in the region are produced and directly sold by Nestlé Waters drink company in Switzerland.

Based on the reports, the Nestlé Waters’ division is the one operating the U.S. production and distribution of the brand as it does in the EU countries that are not managed by the unnamed partner distributor in Germany.

At any rate, it was added that Nestea was also traded under a straight license agreement with distributors in various countries such as Romania, Bulgaria, Poland, the Baltics, the Czech Republic, Hungary, and Slovakia.

Nestlé said that as the joint venture with the German distributor has ended, it is high time for them to develop the Nestea brand independently. The company also mentioned that the ready-to-drink (RTD) tea market has advanced, so it is really the right time to expand its Nestea products.

Nestea Iced Tea is a Swiss brand owned by Nestlé but manufactured by The Coca-Cola Company. It is being distributed in the United States by Nestlé's beverage division, and for the rest of the world, Beverage Partners Worldwide stands as its distributor. BPW is a joint venture between Nestlé and Coke soda maker.

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