VEVEY, SWITZERLAND AND SEATTLE; August 28, 2018 (Starbucks news release) â NestlĂ© and Starbucks Corporation on Tuesday announced the closing of the deal granting NestlĂ© the perpetual rights to market Starbucks Consumer Packaged Goods and foodservice products globally, outside of the companyâs coffee shops.
Through the alliance, the two companies will work closely together on the existing Starbucks range of roast and ground coffee, whole beans as well as instant and portioned coffee. The alliance will also capitalize on the experience and capabilities of both companies to work on innovation with the goal of enhancing its product offerings for coffee lovers globally.
âThis partnership demonstrates our growth agenda in action, giving NestlĂ© an unparalleled position in the coffee business with a full suite of innovative brands. With Starbucks, NescafĂ© and Nespresso we bring together the worldâs most iconic coffee brands,â said Mark Schneider, NestlĂ© CEO. âThe outstanding collaboration between the two teams resulted in a swift completion of this agreement, which will pave the way to capture further growth opportunities,â he added.
The agreement significantly strengthens NestlĂ©âs 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, utilizing the global reach of NestlĂ©.
âThis global coffee alliance with NestlĂ© is a significant strategic milestone for the growth of Starbucks,â said Kevin Johnson, president and ceo of Starbucks. âBringing together the worldâs leading coffee retailer, the worldâs largest food and beverage company, and the worldâs 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.â
Approximately 500 Starbucks employees in the United States and Europe will join the NestlĂ© family, with the majority based in Seattle and London. The international expansion of the business will be led from NestlĂ©âs global headquarters in Vevey, Switzerland.
The agreement covers Starbucks packaged coffee and tea brands, such as Starbucks, Seattleâs Best Coffee, TeavanaTM/MC, 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.