LIMA, Peru (AP) -- The Coca-Cola Co. has bought half of Peru's Inca Kola, a beverage that may be one of the few soft drinks in the world to outsell Coke in its own domain.
Analysts said Coke has long wanted to purchase the cola that incites patriotism in many Peruvians. Coke called the purchase a "strategic partnership," not a takeover as some citizens had feared.The sale was announced Tuesday at a news conference.
Coke bought 50 percent of Inca Kola while the family that has run the company for 89 years will retain 50 percent. Coke is also buying 20 percent of Inca Kola's Lima bottler.
Coke will lead global marketing and sales of Inca Kola, while operations inside Peru will be run as a joint venture between the partners, said Timothy Haas, president of Coke's Latin American subsidiary.
Officials would not say how much Coca Cola paid.
"Inca Kola has a great symbolic importance because Peru is one of the few countries in the world where Coca-Cola is not the No. 1 soft drink," said Michael Flit, beverage analyst for Banco de Credito, Peru's largest bank.
Inca Kola and Inca Kola Diet account for 30 percent of soft drink sales in Peru, and Coca-Cola and Coca-Cola Light 28 percent, Flit said.
Coke officials say their figures show that Coca-Cola soft drinks, which include Sprite and Fanta, have 34 percent of the Peruvian market compared to 32 percent for Inca Kola products.
The partial sale and uncertain future of Inca Kola threatens to stir a nationalist reaction in Peru, where many people drink the ultra-sweet, bubble gum-like beverage out of patriotism.
To ease such fears, Coke officials said they will not change Inca Kola but instead will use their international sales network to boosts sales around the world.
Inca Kola is sold in 18 U.S. states, Ecuador, Japan and Europe.