Consumer goods giant Nestle has announced it has reached a deal with international coffee shop chain Starbucks, enabling it to market the latter’s retail and foodservice products across the globe.
The $7.15 billion deal gives Nestle the right to market Starbucks branded products in perpetutity, enabling it to “capture exciting new growth opportunities in the rest of the world with Starbucks premium products”, the firm said in a statement.
The company added that the tie-up would see the two firms working closely together on innovation and go-to-market strategies, with approximately 500 Starbucks employees joining Nestle “to drive performance of the existing business and global expansion”.
Commenting on the deal, Nestle CEO Mark Schneider said: “This transaction is a significant step for our coffee business, Nestlé’s largest high-growth category. With Starbucks, Nescafé and Nespresso we bring together three iconic brands in the world of coffee. We are delighted to have Starbucks as our partner. Both companies have true passion for outstanding coffee and are proud to be recognized as global leaders for their responsible and sustainable coffee sourcing. This is a great day for coffee lovers around the world”.
The partnership, which excludes ready-to-drink products and sales of any products within Starbucks coffee shops, is expected to close by the end of 2018, subject to customary regulatory approval.