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Nestlé agree $7.15bn deal with Starbucks for the perpetual global licence for products

mcpherrin mcpherrin
|Aug 28|magazine5 min read

The US-based coffee giants Starbucks and food company, Nestlé, has confirmed a $7.15bn deal that will see Nestle granted perpetual rights to advertise Starbucks Consumer Packaged Goods and Foodservice products worldwide and outside of Starbucks outlets.

As part of the joint-venture, the firms will collaborate on the current Starbucks range of roast and ground coffee, whole beans, as well as instant and portioned coffee.

It is thought that the move will enable both companies to prioritise innovation that will allow Starbucks to keep on enhancing its product and produce the best coffee possible.

Mark Schneider, Nestlé CEO, said: “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.”

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“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 deal will see Nestlé’s coffee portfolio substantially improve in North America and will create global expansion in grocery and food service for Starbucks.

It is anticipated that 500 Starbucks workers in Europe and the US will become Nestlé employees, with most of them thought to be based in London and Seattle.