Coca-Cola Co. and Italian coffee maker Illycaffe SpA said Thursday they have finalized plans to introduce premium ready-to-drink coffee beverages in 10 European countries in April.

The products, which will be offered in cans, include: Caffe, a chilled espresso-based coffee with no milk; Cappuccino, an Illy espresso blended with milk and dark cacao; and Latte Macchiato, a smooth Illy espresso with milk.

(ENLARGE)

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The Illy agreement is significant for Coca-Cola because the ready-to-drink coffee category is a fast-growing segment, and PepsiCo has held the top spot in the U.S. through a joint venture with Starbucks. Coca-Cola has deals with Caribou and Godiva for ready-to-drink coffees, but Illy provides another opportunity to grab market share.

The venture's launch will be through Coca-Cola Hellenic, Coca-Cola's Greek bottling partner. Markets include Austria, Croatia, Greece and Ukraine. But Illy and Coca-Cola said they plan to expand into additional countries in Europe, Asia, North America, Eurasia and the Pacific in 2008 and 2009. Coca-Cola and Illy announced in October they would work together on ready-to-drink coffees.

"When we announced the partnership between the Coca-Cola Co. and Illy a few months ago, we committed to deliver the perfect ready to drink espresso experience," said Muhtar Kent, Coca-Cola president and chief operating officer, in a press release.

"Today, we believe we have delivered on that promise with an authentic Italian coffee experience. I look forward to this partnership delivering these great brands across the globe and enhancing our global leadership in the fast growing RTD coffee category."