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

By mcpherrin mcpherrin

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.”

See more:

“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.


Featured Articles

Top 10 easiest countries in the world to do business

Business Chief takes a look at the top 10 places in the world to do business, according to TMF Group's Global Business Complexity Index (GBCI) for 2023

Patagonia Chair Charles Conn on becoming an imperfectionist

Entrepreneur and Patagonia Chair Charles Conn talks to Business Chief about rethinking strategy amid uncertainty, and why an imperfectionist approach works

Top 10 most valuable brands in the world – Amazon to TikTok

Business Chief takes a look at the top 10 most valuable brands in the world, according to Brand Finance, which puts 5,000 major companies to the test

Four priorities for new Twitter CEO Linda Yaccarino

Leadership & Strategy

Top 10 shifts transforming organisations – McKinsey & Co

Leadership & Strategy

Top 10 fastest-growing jobs in the world according to WEF

Technology & AI