Nestlé pays $7.15bn for right to sell Starbucks packaged coffee business

 

As part of a global alliance, Nestlé the world’s leading nutrition, health and wellness company has agreed a £5.28bn ($7.15bn) cash deal with Starbucks to sell its coffee beans directly to consumers through supermarket and other food shops around the world outside the US brand’s café chain.

Nestlé already owns Nescafe and Nespresso brands and the company said this agreement would boost its North American position.

“The Global alliance will bring the Starbucks experience to the homes o millions more around the world, “ Kevin Johnson, CEO of Starbucks.

Nestlé reported sales of £66bn last year, with coffee among their fastest growing categories, The food giant also owns Purina pet food, KitKat and Haagen-Dazs ice cream. Starbucks covered by the deal currently generates around £2bn (£1.48bn) in annual sales and includes coffee beans and ground coffee that Nestle will be selling outside of Starbucks’ coffee shops.

 

Nestlé already owns Nescafe and Nespresso brands and the company said this agreement would boost its North American position.

“The Global alliance will bring the Starbucks experience to the homes o millions more around the world, “ Kevin Johnson, CEO of Starbucks.