General Merchandise/HBC

Nestle and Starbucks Finalize Deal for Global Collaboration

Food and beverage company attains rights to market coffee giant’s products worldwide

VEVEY, Switzerland & SEATTLE -- Nestle and Starbucks have officially closed a deal that grants the food and beverage company the perpetual rights to market the coffee giant’s consumer packaged goods and foodservice products globally.

From here on out, the two companies will collaborate on Starbucks’ line of roast and ground coffee, instant and portioned coffee, and whole beans. Both brands will focus on innovation and go-to-market strategies, while Starbucks will lead in sourcing and roasting, as well as its own global brand management.

“This partnership demonstrates our growth agenda in action, giving Nestle an unparalleled position in the coffee business with a full suite of innovative brands,” said Mark Schneider, CEO of Nestle. “With Starbucks, Nescafe 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.”

The deal, originally made in May, allows Nestle to market, sell and distribute Starbucks, Seattle’s Best Coffee, Starbucks Reserve, Teavana, Starbucks Via and Torrefazione Italia packaged coffee and tea products anywhere outside of Seattle-based Starbucks’ 28,000 coffee shops. It excludes ready-to-drink items and any products currently within Starbucks stores.

This agreement bolsters Nestle's coffee portfolio and Starbucks’ expansion in retail and foodservice channels around the world.

“This global coffee alliance with Nestle is a significant strategic milestone for the growth of Starbucks,” said Kevin Johnson, president and CEO of Starbucks. “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.”

Around 500 Starbucks employees in the United States and Europe—mainly Seattle and London—will join Nestle to drive business performance and global expansion. The international expansion will be led from Nestle’s global headquarters in Vevey, Switzerland.

Nestle is a leading food and beverage company with more than 2,000 brands distributed in nearly 200 countries around the world. With cafes around the globe, Seattle-based Starbucks is a roaster and retailer of specialty coffees.

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