Coca-Cola Nestlé Refreshments Company (A)

This is the first of a five-case series. Coca-Cola Nestlé Refreshments Company (CCNR) began operations in 1991 as a joint venture (JV) between Coca-Cola and Nestlé. Both companies had manufactured and marketed a ready-to-drink coffee-based drink in Japan very successfully. Aware of a large potential world market and of the difficulties associated with launching a new product category on a worldwide basis, the two companies decided to combine their respective capabilities for this purpose. Case A describes the purpose of the JV, the contributions made by each partner, the configuration of activities, and the composition of both the management team and the Board of Directors. When negotiations were almost finished, the partners decided to include in the agreement tea-based and chocolate-based drinks as potential future extensions of the product portfolio.