Starbucks and Nestlé sign global alliance

Starbucks Corporation today announced it will form a global coffee alliance with Nestlé S.A. to accelerate and grow the global reach of Starbucks brands in Consumer Packaged Goods (CPG) and Foodservice.

The agreement is subject to customary regulatory approval and is expected to close this summer or early fall. The pact excludes ready-to-drink coffee, tea and juice products.

As part of this perpetual global license agreement, Starbucks will lead in sourcing, roasting and Starbucks global brand management for the alliance, while the two companies will work closely together on innovation and go-to-market strategies.

Nestlé will obtain the rights to market, sell, and distribute Starbucks®, Seattle’s Best Coffee®, Starbucks Reserve®, Teavana™ , Starbucks VIA® and Torrefazione Italia® packaged coffee and tea in all global at-home and away-from-home channels. Nestlé will pay Starbucks $7.15 billion in closing consideration, and Starbucks – with a focus on long term shareholder value creation – will retain a significant stake as licensor and supplier of roast and ground and other products going forward. Additionally, the Starbucks brand portfolio will be represented on Nestlé’s single-serve capsule systems.

The combination of Starbucks brand with the global reach of Nestlé and its iconic coffee brands opens new growth opportunities in the established North American markets and unlocks expansion in international markets.

In the United States, it also enhances Nestlé’s retail and Foodservice presence in coffee, complementing its position in instant coffee and super-premium single serve with Starbucks strong presence in K-cup® pods.

Image over the headline.-  Howard Schulz (Executive Chairman, Starbucks) -left- and Steve Presley (Market Head and CEO Nestlé USA. © Starbucks. 

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