Nestlé and the Spanish brewing company Damm have officially signed an agreement to produce, market, and distribute Nestea, the leading iced tea brand, across Spain, Andorra, and Gibraltar starting in 2025. This partnership marks a significant milestone for both companies and opens a new chapter for the Nestea brand in the competitive non-carbonated beverage market.
Under this agreement, Damm will manufacture the full range of Nestea flavors and formats at its state-of-the-art facility in Salem, Valencia. The products will be distributed through both food retail and hospitality channels, ensuring wide availability for consumers beginning January 1, 2025.
A Strategic Alliance for Growth
Nestlé Spain’s Managing Director, Jordi Llach, expressed enthusiasm for the partnership:
"We are thrilled to announce that Nestea will continue to be marketed in Spain with the support of a partner like Damm, known for its expertise and strong track record. We are confident that this new stage will be a success, allowing consumers to continue enjoying their favorite tea brand."
Damm’s CEO, Jorge Villavecchia, echoed this optimism:
"Nestea is a benchmark in the tea soft drink market. This agreement strengthens our portfolio, offering consumers a high-quality product that has been cherished for decades. We are excited about the growth opportunities in the non-carbonated beverage segment and look forward to building on the success of the Nestea brand."
A New Era for Nestea
This collaboration follows a long history of Nestea’s evolution. The brand first gained prominence through a partnership between Nestlé and Coca-Cola under the Beverage Partners Worldwide (BPW) joint venture, which began in 2001. After the dissolution of BPW in 2017, Nestlé continued to license Coca-Cola to manufacture and distribute Nestea in several markets, including Spain.
With the conclusion of this licensing agreement, Nestlé is now leveraging its partnership with Damm to fully reclaim Nestea’s production and distribution in Spain. This strategic shift sets the stage for Nestea to compete directly with Coca-Cola’s Fuze Tea, positioning itself for long-term growth in the refreshing tea drinks market.
Looking Ahead
The first Nestea products manufactured by Damm have already rolled off the production line and will hit store shelves in January 2025. With Damm’s extensive expertise and Nestlé’s iconic brand power, the alliance is poised to redefine the iced tea landscape in the region.
