CCE to drop Arizona in favor of glaceau in most markets

Arizona teas will lose distribution in many markets as a consequence of Coca-Cola’s May 2007 acquisition of glaceau, makers of vitaminwater.

The Atlanta Journal Constitution reported that Coca-Cola Enterprises, Coke’s largest distributor, will scale back a distribution agreement with Arizona in favor of carrying glaceau’s functional water lines.

CCE will continue to distribute Arizona, which competes with Coke’s Nestea and Gold Peak brands, in markets where they will not distribute vitaminwater due to glaceau’s strong pre-existing network of distributors, the AJC reported.

Coca-Cola owns a 35 percent share of CCE, but the company holds an independent board and signed a three-year agreement in August to carry only brands that Coca-Cola and CCE mutually agreed upon. The AJC reported that CCE agreed to the deal on the condition that they would get to distribute glaceau.