Tuesday, August 28, 2018

Nestlé deal with Starbucks to market Starbucks products globally

KUALA LUMPUR, Aug 28 (Bernama) -- Nestlé and Starbucks Corporation have closed the deal granting Nestlé the perpetual rights to market Starbucks Consumer Packaged Goods and Foodservice products globally, outside of the company’s coffee shops.

Both companies will work closely together on the existing Starbucks range of roast and ground coffee, whole beans as well as instant and portioned coffee besides capitalise on their experience and capabilities to work on innovation with the goal of enhancing Starbucks’ product offerings for coffee lovers globally.

President and chief executive officer (CEO) of Starbucks, Kevin Johnson in a statement said the global coffee alliance with Nestlé is a significant strategic milestone for the growth of Starbucks and helps the company to amplify the brand around the world while delivering long-term value creation for Starbucks’ shareholders.

Meanwhile, Nestlé CEO, Mark Schneider said the partnership demonstrates their growth agenda in action, giving Nestlé an unparalleled position in the coffee business with a full suite of innovative brands.

The agreement significantly strengthens Nestlé’s coffee portfolio in the North American premium roast and ground and portioned coffee business. It also unlocks global expansion in grocery and foodservice for the Starbucks brand, utilising the global reach of Nestlé.

It covers Starbucks packaged coffee and tea brands including Starbucks, Seattle’s Best Coffee, Teavana, Starbucks VIA Instant, Torrefazione Italia coffee and Starbucks-branded K-Cup pods. It excludes Ready-to-Drink products and all sales of any products within Starbucks coffee shops.

Approximately 500 Starbucks employees in the United States and Europe will join the Nestlé family, with the majority based in Seattle and London. The international expansion of the business will be led from Nestlé’s global headquarters in Vevey, Switzerland.

--BERNAMA 

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