Nestlé and Cola deny joint venture rumours

Responding to an analyst's report, (see news yesterday) Nestle SA​ said it has no plans to collaborate with Coca-Cola Co.​ in the bottled-water business. "Presently there are no plans for a joint venture in the water business,"​ Nestle spokesman Francois-Xavier Perroud said. Coke (KO) also denied the talk, which originated with a research report from Sanford C. Bernstein & Co. analyst Bill Pecoriello. In his report issued Monday, Mr. Pecoriello said that the companies were considering whether to form about a $3 billion joint venture in the water business. He said the combination would be similar to partnerships Coke (KO) has formed with Procter & Gamble Co. (PG) in the juice segment and Nestle in the coffee and tea business. Water is a highly fragmented industry. The top four players-Coke, Nestle, PepsiCo Inc. and France's Groupe Danone- account for less than 25 per cent of market share. Source: Dow Jones