Active Stocks
Tue May 21 2024 12:59:34
  1. Tata Steel share price
  2. 174.20 3.75%
  1. NTPC share price
  2. 373.30 1.88%
  1. Power Grid Corporation Of India share price
  2. 326.90 3.17%
  1. Tata Motors share price
  2. 954.40 0.15%
  1. State Bank Of India share price
  2. 833.80 1.58%
Business News/ Companies / News/  Nestle seals $7.5 billion deal to market Starbucks coffee
BackBack

Nestle seals $7.5 billion deal to market Starbucks coffee

Around 500 Starbucks employees in the US and Europe will join Nestle

Nestle CEO Mark Schneider. The deal with Starbucks will significantly boost Nestle’s portfolio in North America. Photo: BloombergPremium
Nestle CEO Mark Schneider. The deal with Starbucks will significantly boost Nestle’s portfolio in North America. Photo: Bloomberg

Zurich: Nespresso maker Nestle on Tuesday said it has sealed a deal to market the products of US coffee giant Starbucks around the world, outside of its cafes.

Swiss food giant Nestle, which also produces Nescafe instant coffee, had announced in May it would pay $7.15 billion (6.13 billion euros) for the rights to market Starbucks coffee globally. Under the deal, some 500 Starbucks employees in the US and Europe will join Nestle, the Swiss company said in a statement.

“With Starbucks, Nescafe and Nespresso we bring together the world’s most iconic coffee brands," Nestle CEO Mark Schneider said. “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," he added.

According to the statement, the deal will significantly boost Nestle’s portfolio in North America. Under Schneider’s leadership, Nestle has made coffee a key priority in its growth strategy, particularly in the US. Since the CEO took over in January 2017, the group has bought a majority stake in California-based high-end brand Blue Bottle Coffee and acquired Texan brand Chameleon Cold Brew.

Starbucks CEO Kevin Johnson said his firm is also set for a major boost under the deal. “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.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed - it's all here, just a click away! Login Now!

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 28 Aug 2018, 02:24 PM IST
Next Story footLogo
Recommended For You