Nestlé and Starbucks conclude licensing deal for $7.15bn
Nestlé, the Swiss food and beverage firm, has completed a licensing deal with the US-based coffee company, Starbucks.
The closure of the US$7.15bn deal that will grant Nestlé the rights to globally market Starbucks Consumer Packaged Goods and Foodservice products was announced on 28 August.
“This partnership demonstrates our growth agenda in action, giving Nestlé an unparalleled position in the coffee business with a full suite of innovative brands,” commented Mark Schneider, CEO of Nestlé.
“With Starbucks, Nescafé and Nespresso we bring together the world’s most iconic coffee brands.”
“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 agreement will expand the Swiss firm’s portfolio in North America’s premium coffee business, with 500 Starbuck employees to join Nestlé.
“This global coffee alliance with Nestlé is a significant strategic milestone for the growth of Starbucks,” stated 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 helps us amplify the Starbucks brand around the world while delivering long-term value creation for our shareholders.”
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