Coca-Cola Nestlé Refreshments Company (B)

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 B depicts the early operation of the JV and describes the events from the perspective of the JV management team. 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.