After more than three decades of being a staple in Spanish bars and supermarkets, Nestea will no longer be sold in Spain, including the Canary Islands, from January 1st, 2025. This marks the end of a longstanding commercial collaboration between Coca-Cola and Nestlé, which first introduced Nestea to the market in 1993. The decision has been in the making for years, as the two companies gradually parted ways due to differences in their commercial strategies.
Nestea, a popular ready-to-drink iced tea, gained widespread popularity in Spain thanks to its partnership between Coca-Cola and Nestlé. Over the years, various flavours were launched to cater to evolving tastes.
However, the agreement between the two companies will officially terminate on December 31st, 2024. Following this, Nestea will no longer be distributed in Spain meaning only what is already on shelves, will be sold.
In place of Nestea, Coca-Cola Spain will shift its focus to promoting Fuze Tea, a product that has been on the Spanish market since 2023. Fuze Tea will take over as Coca-Cola's main iced tea brand across Spain, marketed under the name Fuze Tea Original.
Along with the classic flavour, a variety of new options, including mango-pineapple, green tea-passion fruit, and peach, will be available. Consumers can also expect sugar-free and low-calorie versions, targeting the growing demand for healthier drink options.
Fuze Tea is already present in over 90 countries and has been steadily growing in Spain, with a 6.3% increase in the iced tea category over the past five years. Coca-Cola aims to double this growth by 2030, expanding Fuze Tea's reach to over 225,000 points of sale across Spain. The brand plans to compete directly with rivals like Lipton (owned by PepsiCo), and its strategy will focus heavily on appealing to younger consumers, who are more open to trying new flavours and beverage trends.
Fuze Tea will be available in convenient formats, including 330ml cans and 1.5-litre bottles, maintaining a consumer-friendly approach as it takes Nestea's place in the market.
The phase-out of Nestea in Spain has been expected since 2017, when Coca-Cola and Nestlé first decided to end their collaboration due to differing market strategies. Though Nestea will no longer be available in Spain, it will still be sold in other countries. Whether it will make a return to the Spanish market remains unclear.
As Nestea and Fuze Tea coexist in stores until the end of 2024, longtime Nestea fans will have to decide whether Fuze Tea can live up to the iconic drink they’ve come to love.
