Coca-Cola Nestlé Refreshments Company (D): Nestlé's Perspective

The 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 D describes the events from the perspective of Nestlé. After initial cooperation from both partners, the JV starts experiencing problems. CCNR's management team starts shifting its focus from coffee-based to tea-based drinks.