Coca-Cola, illycaffe set up coffee joint venture
MILAN, Oct 15 (Reuters) - The world's biggest drinks maker Coca-Cola Co (KO.N) and Italian premium coffee roaster illycaffe said they have agreed to set up a joint venture as they aim to expand in a $10 billion ready-to-drink (RTD) coffee market.
The joint venture would focus on the premium RTD coffee segment, but the details of brands and distribution were yet to be finalised as the two companies aim to sign the final deal by the end of 2007, they said in a joint statement on Monday. The RTD coffee category globally is valued at just under $10 billion and has been growing rapidly over past few years, with global growth rate, excluding Japan, of about 10 percent in the past five years, they said.
"We will be able to bring our brand building and distribution expertise together with illy's premium brand reputation," Coca-Cola's President and Chief Operating Officer Muhtar Kent said in the statement.
Coca-Cola has been adding tea, coffee, water and energy drinks to its portfolio of carbonated drinks as more and more health-conscious consumers are avoiding sugary soda which they see as fattening.
((Reporting by Svetlana Kovalyova; Reuters Messaging: svetlana.kovalyova.reuters.com@reuters.net; email svetlana.kovalyova@reuters.com; Tel: +39 02 6612 9450)) Keywords: COFFEE COCACOLA/ILLY
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