Nestlé and Starbucks clink mugs on marketing deal
The two groups, both big names in coffee, have finalised the details of their alliance
Zurich — Nespresso maker Nestlé has sealed a deal to market the products of US coffee giant Starbucks around the world, outside its cafes. Swiss food behemoth Nestlé, which also produces Nescafe instant coffee, announced in May that it will pay $7.15bn for the rights to market Starbucks coffee globally. Under the deal, about 500 Starbucks employees in the US and Europe will join Nestlé, the Swiss company said on Tuesday. "With Starbucks, Nescafe and Nespresso we bring together the world’s most iconic coffee brands," Nestlé 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 Nestlé’s portfolio in North America. Bloomberg News said Nestlé has struggled in the US for years. Under Schneider’s leadership, Nestlé has made coffee a key priority in its growth strategy, particularl...
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