Coffee alliance: Nestlé unveils Starbucks premium instant range

26 Feb 2020 --- The coffee collaboration between Starbucks and Nestlé is picking up pace with the launch of Starbucks’ premium instant coffee. The new range includes Medium Roast and Dark Roast coffees, as well as a variety of coffee beverages and a tea latte. The partnership, which began in May 2018 when Nestlé paid US$7.15 billion for rights to sell Starbucks packaged coffees teas around the world, is proving fruitful and the new line is expected to boost growth further.

The tie-up allows the companies to “move at speed” and expand the Starbucks brand into the instant coffee segment, which is growing fast globally. 

Available in multi-serve tins and single-serve formats, the products are touted as combining the expertise and heritage of Nestlé in the instant coffee segment with the signature premium taste of Starbucks.  

From this month, Nestlé will introduce the new range of Starbucks premium instant coffee globally in markets including the UK, Ireland, Brazil, Chile, Mexico, Australia, New Zealand, Mainland China, Hong Kong, Taiwan, Japan, Malaysia, Singapore, Thailand and South Africa.

“The continued strong collaboration between Starbucks and Nestlé enabled us to move at speed and to expand the Starbucks brand into the instant coffee segment. We are delighted to keep leveraging our coffee expertise to create new experiences for consumers,” says David Rennie, Deputy Executive Vice President, Head of Nestlé Coffee Brands. 

“The instant coffee segment is growing fast globally. With the launch of Starbucks premium instant coffee, we have a new range that resonates with Starbucks consumers and will strengthen our leading position,” he adds.

The Medium Roast is a smooth and balanced Latin American coffee with creamy notes of milk chocolate and nuts. The Dark Roast is a fuller-bodied, bold Latin American coffee with a sweet roast flavor and notes of dark chocolate.

The new coffee beverages and tea latte are directly inspired by signature Starbucks beverages, available in Cappuccino, Caffè Latte, Caffè Mocha, Caramel Latte, and Vanilla Latte, as well as tea-based Matcha latte. All products are crafted with the same high-quality, ethically sourced C.A.F.E. Practices arabica beans that are served in Starbucks coffee houses around the world. 

"Need for speed"
Nestlé recently reported an accelerated organic growth, fueled by strong global momentum in the US and Purina PetCare brand, with coffee also having good momentum. This was helped by strong demand for Starbucks products, which have been rolled out in more than 40 countries, noted the company. 

“Nestlé will continue to focus on growth. The launch of our premium Starbucks products, for example, has been successful. We are pleased with the speed of the product rollout and the positive response by consumers. The company is fully embracing the need for speed, as the expansion of our new plant-based food and beverage offerings has shown. We are getting products to market faster,” said Mark Schneider, CEO of Nestlé, last month.

When Nestlé released its nine-month sales report for 2019, outlining growth driven by the global release of its first coffee line under the Starbucks brand name, the growth was apparent. 

This Starbucks premium instant coffee range will be sold in supermarkets and major online platforms.

By Gaynor Selby