Nestlé and Starbucks had struck a deal where Nestlé receives 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 on the existing Starbucks range of roast and ground coffee, whole beans as well as instant and portioned coffee.
The partnership will also capitalize on the experience and capabilities of both companies to work on innovation with the goal of enhancing its product offerings for consumers globally.
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.
Approximately 500 Starbucks employees in the United States and Europe will join the Nestlé family, with the majority based in Seattle, US and London, UK.
The international expansion of the business will be led from Nestlé’s global headquarters in Vevey, Switzerland.