Coca-Cola Enterprises plans to stop distributing Arizona tea in most of the United States in early May, scaling back a product agreement that had created tension between CCE and Coca-Cola Co.

CCE, which handles about 80 percent of Coca-Cola's North American bottle and can volume, announced an agreement in late 2006 to distribute three flavors of Arizona tea in 34-ounce bottles.

Arizona, made by New York-based Hornell Brewing Co., is a competitor to Coca-Cola's own tea line, which includes Nestea and Gold Peak.

CCE said Tuesday it decided to drop Arizona in the bulk of its U.S. markets to focus on Glaceau, a maker of enhanced waters bought by Coca-Cola last year.

CCE added Glaceau to its lineup in November in most of its U.S. territory except for a few markets where Glaceau had strong existing distributors. CCE will still carry the 34-ounce Arizona in the markets where it does not distribute Glaceau.

"It's because of the commitment to support the Glaceau brands that we're no longer carrying Arizona where we distribute Glaceau," said CCE spokeswoman Laura Brightwell.

Coca-Cola declined to comment on the move. Coca-Cola owns 35 percent of CCE's stock, but CCE has an independent board and has been vocal about wanting a broader, more competitive portfolio of beverages. The traditional business of carbonated soft drinks has declined in recent years in the United States, while sales of non-carbonated drinks such as teas and enhanced waters have risen.

Glaceau gave Coca-Cola the kind of fast-growing brand sought by bottlers, including CCE. Glaceau, which makes Vitaminwater and Smartwater, has grown sales volume at 100 percent or more for four straight years.

In August 2007, CCE signed a three-year agreement to carry only brands mutually agreed upon with Coca-Cola. The deal was made on the condition that CCE would get to distribute Glaceau.

"Coke was never happy about CCE carrying Arizona," said John Sicher, editor and publisher of Beverage Digest. "But CCE was very happy to get Glaceau, and I think this was part of the deal."