Nestlé & Starbucks close US$7.15bn licensing deal

636710401623119660coffee cup.jpg

28 Aug 2018 --- Nestlé and Starbucks have closed their partnership deal granting Nestlé the perpetual rights to market Starbucks Consumer Packaged Goods and Foodservice products globally, outside of the company’s coffee shops. The US$7.15 billion deal means that Nestlé can sell Starbucks products such as Seattle’s Best Coffee and TeavanaTM/MC outside of the US.

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, according to both companies. 

“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, 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 notes. 

The agreement 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,” explains 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 Starbucks brand around the world while delivering long-term value creation for our shareholders.” 

Approximately 500 Starbucks employees in the US and Europe will join the Nestlé family, with the majority based in Seattle and London, according to the company. The international expansion of the business will be led by Nestlé’s global headquarters in Vevey, Switzerland.

To contact our editorial team please email us at editorial@cnsmedia.com

Related Articles

Food Ingredients News

Nestlé highlights sharpened plant-based focus as Starbucks range debuts

14 Feb 2019 --- Swiss giant Nestlé is exploring strategic options for the Herta charcuterie business including a potential sale, as the company reports its full-year results. As a further step in positioning its portfolio towards attractive high-growth categories, the company is looking to potentially divest its cold cuts and meat-based products, in favor of plant-based products to keep pace with current consumer trends. The company continues to pivot its businesses to changing market conditions by unveiling its first coffee lines under the Starbucks name which comes after Nestlé closed a US$7.15 billion licensing deal to market Starbucks Consumer Packaged Goods and Foodservice products globally.

Food Ingredients News

In love with flavor: Valentine’s Day instigates sweet and savory, indulgent NPD

14 Feb 2019 --- Valentine’s Day offers consumers a chance to spoil their loved ones – and often themselves – with a surge of limited edition NPD including tasty treats and flavorful twists on popular products. In this space, FoodIngredientsFirst takes a look at some of the sweet and savory options on offer this year, in honor of Saint Valentine.

Food Ingredients News

Future Food Initiative: Bühler, Givaudan and Nestlé collaborate to boost healthy and sustainable innovation

05 Feb 2019 --- Leading food industry players have joined forces to financially back a new project which aims to accelerate the development of healthy food products that leverage consumer trends. Bühler, Givaudan and Nestlé are co-founding the Future Food Initiative (FFI), designed to step up the search for sustainable, plastic-free packaging and to secure access to affordable nutrition as part of the global challenge of addressing hunger, malnutrition and sustainability.

Food Ingredients News

Nestlé discloses soy, meat, vanilla and hazelnut suppliers to accelerate transparency

04 Feb 2019 --- Nestlé is accelerating its journey towards reaching full supply chain transparency by disclosing the list of its suppliers alongside a variety of data on its 15 priority commodities. These commodities cover 95 percent of the company’s annual sourcing of raw materials. This is reportedly the first disclosure of its kind in the industry and comes at a time when global consumers demand to know exactly what is in their food and where it comes from.

Food Ingredients News

Microbial fermentation helps make coffee taste better, reveals new research

04 Feb 2019 --- When it comes to processing coffee beans, longer fermentation times may result in a better taste. This is according to Luc De Vuyst, M.Sc., Ph.D., Professor of Industrial Microbiology and Food Biotechnology, Vrije Universiteit Brussel, Belgium. Lactic acid bacteria also play a positive role in this process and other species of microbes may contribute. However, more investigation is needed in this area, according to the research, which was published in Applied and Environmental Microbiology.

More Articles