Nestlé, one of the largest food manufacturers worldwide, has announced that it has bought the right to sell Starbucks coffee to its customers to prepare at home.
— Nestlé (@Nestle) May 7, 2018
The deal, worth over $7 billion Dollars, sees Nestlé expanding its coffee territory, which is already considerably strong with well known South African household brands such as Nescafé and Ricoffy.
“With Starbucks, Nescafe and Nespresso, we bring together three iconic brands in the world of coffee,” Nestlé CEO Mark Schneider said in the statement. He expanded, “(it’s) a great day for coffee lovers around the world”.
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Starbucks maintains the retail rights in North America, through its ubiquitous cafe outlets across the continent, while Nestlé will assume the rights to sell Starbucks branded coffee worldwide.
The Starbucks coffee products will be integrated into Nestlé’s tremendously popular domestic pod machines, the Nespresso and Dulce Gusto formats.
“This global coffee alliance will bring the Starbucks experience to the homes of millions more around the world through the reach and reputation of Nestlé,” the Starbucks chief executive, Kevin Johnson, said to CNN.
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