According to a report in The Atlanta Journal - Constitution, the Coca-Cola Company is in negotiations with the drinks company, Arizona, which could lead to a distribution agreement or a full acquisition.

Arizona's range of innovatively packaged and marketed teas, including Raspberry Tea, Diet Green Tea and Botanical Red Tea, could be useful additions to the Coca-Cola portfolio at a time when the company is looking to increase the emphasis on healthy products.

Neither Coke nor Arizona, which is actually based in New York, have commented on the speculation. One insider suggested that the chances of a successful conclusion are no better than 50:50. The fact that Coca-Cola already has a tea-making joint venture with Nestle is thought by some to militate against a collaboration with Arizona.