FDBusiness.com

Nestlé and Starbucks Bring Together the World’s Most Iconic Coffee Brands in $7.15 Billion Deal

 Breaking News
  • Carlsberg Group Delivers Strong First Half Carlsberg Group has increased operating profit organically by 14.2% in the first half of 2018 with all three of its regions – Western Europe, Asia and Eastern Europe – delivering very solid performances. Organic net revenue growth was 5.1%. Reported operating profit rose by 6.0% to DKr4.373 billion (€586.5 million), impacted by negative currency factors [...]...
  • Levi Roots Caribbean Snack Pots Launched by Aimia Foods Aimia Foods is introducing to the market ‘Levi Roots Caribbean Snack Pots’, a range of On the Go Instant Snack Pots, that consumers simply add hot water to and stir for ease of preparation. Using natural, clean ingredients, the products have an authentic, home cooked taste and incorporate the Levi Roots Caribbean vibe, flavours and recipes. Michelle [...]...
  • National Food & Drink Business Conference and Exhibition 2018 – Citywest Convention Centre, Dublin – Wednesday, September 5th The National Food & Drink Business Conference and Exhibition 2018, Ireland’s premier trade event for the food and drink processing, packaging, ingredients and logistics industries, is being held at the Citywest Convention Centre on Wednesday, September 5th, 2018. The theme of the 2018 National Food & Drink Business Conference and Exhibition is ‘Collaborating for an Innovative [...]...
  • 2 Sisters Outlines Transformation Agenda Ronald Kers, the new chief executive of 2 Sisters Food Group, has spelled out his vision for the future of the company. His first 100 days have been taken up with an assessment of the opportunities for the group and creating the new initiatives he plans to put in place. Ronald Kers comments: “2 Sisters can [...]...
  • General Mills Announces Significant Growth Across its UK Snacking Division General Mills is launching new lines across both its Fibre One and Nature Valley portfolios, as it reveals its snacking division has grown +35.4% and household penetration has grown +12.1 percentage points to 25.3%[1] – equating to the size of London[2]. Cake Bars will be added to Fibre One’s guilt-free snacking range in two flavours: Triple Choc [...]...

Nestlé and Starbucks Bring Together the World’s Most Iconic Coffee Brands in $7.15 Billion Deal

Nestlé and Starbucks Bring Together the World’s Most Iconic Coffee Brands in $7.15 Billion Deal
May 08
11:51 2018

Nestlé has announced an agreement granting the company perpetual rights to market Starbucks consumer and foodservice products globally, outside of the company’s coffee shops. This transaction provides Nestlé with a strong platform for continued growth in North America with leadership positions in the premium roast and ground and portioned coffee businesses. It also allows Nestlé to capture exciting new growth opportunities in the rest of the world with Starbucks premium products. As a complete provider of coffee solutions, Nestlé will accelerate growth in out-of-home channels. The two companies will work closely together on innovation and go-to-market strategies to bring the best coffee to customers around the world.

“This transaction is a significant step for our coffee business, Nestlé’s largest high-growth category,” explains Mark Schneider, chief executive of Nestlé. “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.”

As part of this transaction, Starbucks will receive an up-front cash payment of US$7.15 billion for a business which generated annual sales of US$2 billion. The transaction does not include the transfer of any fixed assets, which facilitates a smooth and efficient integration. Nestlé expects this business to contribute positively to its earnings per share and organic growth targets as from 2019. Nestlé’s ongoing share-buyback program will remain unchanged.

Approximately 500 Starbucks employees will join the Nestlé family to drive performance of the existing business and global expansion. Operations will continue to be located in Seattle.

“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,” says Kevin Johnson, president and chief executive of Starbucks. “This historic deal is part of our ongoing efforts to focus and evolve our business to meet the changing consumer needs, and we are proud to work alongside a company that is committed to our shared values.”

The agreement is subject to customary regulatory approval and is expected to close by the end of 2018. The agreement excludes Ready-to-Drink products and all sales of any products within Starbucks coffee shops.

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • September 5, 2018Int'l Food Products and Processing Technologies Exhibition (WorldFood Istanbul)
  • September 12, 2018Packaging Innovations & Luxury Packaging London 2018
  • September 15, 2018iba
  • September 25, 2018PPMA Show 2018
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements