Nestlé and Starbucks have completed a deal that will see Nestlé granted the perpetual rights to market Starbucks’ range of CPG and foodservice products globally, outside of the latter’s coffee shops.
The alliance will ‘capitalise on the experience and capabilities of both companies to work on innovation with the goal of enhancing its product offerings for coffee lovers globally’, Nestlé said in a statement.
Packaged Brands
The agreement covers packaged coffee and tea bands including Starbucks, Seattle’s Best Coffee, TeavanaTM/MC, Starbucks VIA Instant, Torrefazione Italia coffee and Starbucks-branded K-Cup pods
With the deal Nestlé said that its coffee portfolio in the premium roast/ground and portioned coffee business in North America are ‘significantly strengthened’, while it also unlocks additional foodservice potential for the Starbucks brand.
Starbucks also recently signed a deal with Alibaba, to bolster its position in China.
Growth Agenda
"This partnership demonstrates our growth agenda in action, giving Nestlé an unparalleled position in the coffee business with a full suite of innovative brands,” said Mark Schneider, Nestlé chief executive.
“With Starbucks, Nescafé and Nespresso we bring together the world’s most iconic coffee brands. The outstanding collaboration between the two teams resulted in a swift completion of this agreement, which will pave the way to capture further growth opportunities.”
Around 500 Starbucks employees in both the US and Europe are set to join Nestlé as part of the alliance, mainly in London and Seattle, the home of Starbucks. Nestlé said that the international expansion of the business will be led from Nestlé’s global headquarters in Vevey, Switzerland.
"Bringing together the world’s leading coffee retailer, the world’s largest food and beverage company, and the world’s largest and fast-growing installed base of at-home and single-serve coffee machines helps us amplify the Starbucks brand around the world while delivering long-term value creation for our shareholders,” added said Kevin Johnson, president and CEO of Starbucks.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.
