Nestlè pays $7B to market Starbucks coffee across the globe
Nestlè and Starbucks announced the creation of a new global coffee alliance, aimed towards expanding the global reach of Starbucks’ brand in consumer-packaged goods and foodservice.
As part of the alliance, Nestlè will obtain the rights to market, sell and distribute Starbucks’ Best Coffee, Reserve, Teavana, VIA and Torrefazione Italia products in all global at-home and away-from-home channels.
The company will pay the Seattle-based coffee chain $7.15. billion in closing consideration.
“This global coffee alliance will bring the Starbucks experience to the homes of millions more around the world through the reach and reputation of Nestlé,” Kevin Johnson, president and chief executive officer at Starbucks, said. “This historic deal is part of our ongoing efforts to focus and evolve our business to meet changing consumer needs, and we are proud to work alongside a company that is committed to our shared values.”
In addition, Starbucks’ brand portfolio will be represented in Nestlè’s single-serve capsule systems. Together, both companies will work closely together on innovation and go-to-the market strategies to bring coffee products to consumers across the globe.
“This transaction is a significant step for our coffee business, Nestlé’s largest high-growth category,” Mark Schneider, CEO of Nestlé, said. “With Starbucks, Nescafé and Nespresso we bring together three iconic brands in the world of coffee. We are delighted to have Starbucks as our partner. Both companies have true passion for outstanding coffee and are proud to be recognized as global leaders for their responsible and sustainable coffee sourcing. This is a great day for coffee lovers around the world.”
The agreement excludes ready-to-drink coffee, tea and juice products and is expected to close during summer or early fall.
As part of the alliance, Nestlè will obtain the rights to market, sell and distribute Starbucks’ Best Coffee, Reserve, Teavana, VIA and Torrefazione Italia products in all global at-home and away-from-home channels.
The company will pay the Seattle-based coffee chain $7.15. billion in closing consideration.
“This global coffee alliance will bring the Starbucks experience to the homes of millions more around the world through the reach and reputation of Nestlé,” Kevin Johnson, president and chief executive officer at Starbucks, said. “This historic deal is part of our ongoing efforts to focus and evolve our business to meet changing consumer needs, and we are proud to work alongside a company that is committed to our shared values.”
In addition, Starbucks’ brand portfolio will be represented in Nestlè’s single-serve capsule systems. Together, both companies will work closely together on innovation and go-to-the market strategies to bring coffee products to consumers across the globe.
“This transaction is a significant step for our coffee business, Nestlé’s largest high-growth category,” Mark Schneider, CEO of Nestlé, said. “With Starbucks, Nescafé and Nespresso we bring together three iconic brands in the world of coffee. We are delighted to have Starbucks as our partner. Both companies have true passion for outstanding coffee and are proud to be recognized as global leaders for their responsible and sustainable coffee sourcing. This is a great day for coffee lovers around the world.”
The agreement excludes ready-to-drink coffee, tea and juice products and is expected to close during summer or early fall.