Nestle Waters France (NWF) is reported to have ended its UK distribution contract with Coca-Cola for its Vittel brand of mineral water.
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The move is a consequence of Coca Cola’s plans to launch its Dasani brand of mineral water in the UK in February next year.
Interviewed by France’s La Tribune newspaper, NWF’s communications director, Andre Sembellie, said Coca Cola had given NWF a strategic market position in the UK mainly via its drink dispensing machine network. However, NWF is now obliged to re-think its distribution in the UK and in 2004 there is likely to see a reduction in production of
Vittel bound for the UK working out at around 70 million bottles in 2004.
Not only have exports of Vittel suffered but poor sales are also reported on the French domestic market. Vittel volumes have declined by 10 million bottles while sales of NWF’s Contrex brand are down by 30 million bottles and exports by one million bottles.
The drop in total output of around 111 million bottles is the equivalent of around 6% of annual production.
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