FDBusiness.com

Nestlé and Starbucks Close Deal For Perpetual Global License of Starbucks Consumer Packaged Goods and Foodservice Products

 Breaking News
  • Raisio to Invest €45 Million in New Healthy Foods Facility Finnish and international food company Raisio is investing €45 million in a production facility developing and manufacturing plant-based added value products. The investment is in response to the strong growth in demand for plant-based food, particularly in the European markets. The project is funded by the company’s strong cash position and cash flow. The investment [...]...
  • Bord Bia Opens Third Office in Asia Bord Bia (Irish Food Board) has opened a new office in Tokyo, Japan, bringing to 14 the number of international offices it has promoting the Irish food and drinks industry overseas. Through its Prioritising Markets – Opportunities for Growth study, Bord Bia has identified Japan as being in the top five priority markets for Irish [...]...
  • Packaging Innovations London Set to Inspire at 10th Anniversary Show Packaging Innovations 2019 will return to Olympia for its 10th edition on 11 & 12 September, hosted alongside Luxury Packaging London. As the capital’s most exclusive packaging event it will bring the industry together in a festival of cutting-edge, branded and bespoke packaging, when it welcomes over 180 industry specialists to what is set to be [...]...
  • Fazer to Sell Food Service Business to Compass Group For €475 Million In line with its strategy of focusing on its fast-moving consumer goods and direct-to-consumer businesses, Fazer Group, the international family-owned food business, has agreed to sell Fazer Food Services, a food service provider in the Nordic region, to Compass Group for €475 million, subject to EU Commission competition approval. Fazer Food Services has a total [...]...
  • Müller Targets 25% Sugar Reduction The UK’s favourite yogurt brand[1], which includes Müller Corner and Müllerlight, has confirmed that it is targeting a total sugar reduction of 25%[2] across its branded yogurt portfolio by June 2020 which would equate with the removal of 3300 tonnes of sugar since 2015. If achieved, the reduction would be substantially ahead of Public Health England’s voluntary guidelines which seek [...]...

Nestlé and Starbucks Close Deal For Perpetual Global License of Starbucks Consumer Packaged Goods and Foodservice Products

Nestlé and Starbucks Close Deal For Perpetual Global License of Starbucks Consumer Packaged Goods and Foodservice Products
August 29
09:25 2018

Nestlé and Starbucks Corporation have closed a $7.15 billion deal granting Nestlé the perpetual rights to market Starbucks Consumer Packaged Goods and Foodservice products globally, outside of the company’s 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.

Mark Schneider, chief executive of Nestlé.

“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,” says Mark Schneider, chief executive of Nestlé. “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 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, utilizing the global reach of Nestlé.

“This global coffee alliance with Nestlé is a significant strategic milestone for the growth of Starbucks,” points out Kevin Johnson, president and chief executive 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.”

Approximately 500 Starbucks employees 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 Starbucks 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. It 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

  • June 18, 2019Multimodal 2019
  • June 25, 2019BevExpo 2019
  • October 17, 2019Future Food-Tech
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here



Advertisements