The deal grants Nestle perpetual rights to sell Starbucks products outside of the US company's coffee shops.
Swiss food giant Nestle has sealed a $7.15 billion deal to market products of US coffee giant Starbucks globally. The deal grants Nestle perpetual rights to sell Starbucks products outside of the US company's coffee shops.
Mark Schneider, Nestle’s CEO, said, “With Starbucks, Nescafe and Nespresso, we bring together the world's most iconic coffee brands. 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 $7.15 billion deal will significantly boost Nestle's portfolio in North America. It will also result in shifting of about 500 Starbucks employees in the United States and Europe to Nestle.
Kevin Johnson, CEO of Starbucks, said, "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."