Coca-Cola today (Tuesday) unveils a deal with French food and drinks company Danone to distribute and market some of the Gallic group’s spring water brands in America.
The agreement, which follows a similar alliance in April with Danone’s Evian brand, will see Coke leapfrog PepsiCo in the rapidly growing bottled water market, though it will continue to lag market leader Nestlé.
Under the deal, Danone will supply the joint venture with brands worth $250 million (€265m; £169m) in annual revenues as well as production facilities, while Coke will contribute cash plus its marketing and distribution expertise.
Brands involved in the venture include Dannon and Sparkletts, but Coke’s Dasani and Danone’s Volvic are not thought to be included.
The duo hope to build Dannon into a major national brand. Although sold coast-to-coast, it is not currently one of the top ten bottled waters.
Data sourced from: The Wall Street Journal Online; additional content by WARC staff