Brand Updates & Reviews

Nestle pays Starbucks $7.1bn to sell its coffee around the globe

Nestle has announced that it will pay Starbucks $7.1bn (£5.2bn) to sell the company’s coffee products. The Swiss giant, which boasts Nescafe and Nespresso amongst its brands, will have the right to market Starbucks’ coffee in retail outlets outside the cafe chain.

That part of the business currently generates $2bn in annual sales.

The deal means Nespresso machine owners will be able to buy Starbucks coffee branded pods for use at home.

Consumers will also find Starbucks coffee beans, ground and instant coffee more readily available as Nestle, the world’s largest food and drinks company, uses its vast distribution network to market Starbucks products worldwide.

Nestle’s name will not appear alongside Starbucks’s, but the deal could still help Nestle strengthen its US business, thanks to the powerful High Street coffee brand.

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