International expansion of business between Starbucks and Nestlé will be led from Nestlé’s global headquarters in Vevey
Nestlé and Starbucks Corporation have announced the closing of the deal granting Nestlé the perpetual rights to market the coffee brand‘s Consumer Packaged Goods and Foodservice products globally, outside of its coffee shops.
Through the alliance, the two companies will work closely together on the existing range of roast and ground coffee, whole beans as well as instant and portioned coffee from the brand. The alliance will also 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.
“This partnership demonstrates our growth agenda in action, giving Nestlé an unparalleled position in the coffee business with a full suite of innovative brands. With Starbucks, Nescafé and Nespresso we bring together the world’s most iconic coffee brands,” said Mark Schneider, Nestlé CEO.
“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,” he added.
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.
“This global coffee alliance with Nestlé is a significant strategic milestone for the growth of the company,” 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 help us amplify the brand around the world whilst delivering long-term value creation for our shareholders.”
Approximately 500 employees from the brand 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.
The agreement covers the brand’s packaged coffee and tea brands, such as Starbucks, Seattle’s Best Coffee, TeavanaTM/MC, Starbucks VIA Instant, Torrefazione Italia coffee and Starbucks-branded K-Cup pods.
Starbucks was a four-time global winner of the World Branding Awards in the Retail-Coffee category.