Nestle and Tata exploring AriZona Beverage Co. acquisition
According to several inside sources, food behemoth Nestle SA and tea giant Tata Global Beverages may be looking to acquire AriZona Beverage Co. Both companies held private talks with AriZona management recently, although the deal does not seem to be imminent. Nestle owns Nestea and Sweet Leaf Tea brands in the US, whereas Tata operates under Tetley Tea and several other marques. Founded in 1971, AriZona makes a wide variety of tea, juice and other types of beverages. It is currently one of the biggest brands in the US and is on par with Lipton Iced Tea, owned by Unilever-Pepsico, with about a third of the iced tea market. Coca-Cola Co, which lags rivals in the US tea market, was not mentioned by any sources as having a recent interest, according to Beverage Digest. Sources cite an estimated valuation for AriZona raging from $3bn to $4.25bn.