Starbucks, Nestlé wrap up $7.15 billion licensing deal
The partnership aims to enhancing their product offerings for coffee lovers globally.
Starbucks and Nestlé has announced that they closed the deal, which would give Nestlé perpetual rights to market Starbucks’ consumer packaged goods and foodservice products internationally.
The alliance is said to focus on existing Starbucks range of roast and ground coffee, whole beans as well as instant and portioned coffee.
Kevin Johnson, president and CEO of Starbucks, says that their partnership with Nestlé is “a strategic milestone” for them.
“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,” Johnson said.
Meanwhile, Nestlé CEO Mark Schneider says that they will be able to bring the most iconic brands having Starbucks, Nescafé and Nespresso with them.
“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,” Schneider said.
Last May saw Nestle agreeing to pay $7.15 billion for the right to market Starbucks products from beans to capsules.
