Today: Sunday, 5 December 2021 year

Switzerland: Nestlé seals deal to market Starbucks coffee

Switzerland: Nestlé seals deal to market Starbucks coffee

Under new Nestlé’s deal, some 500 Starbucks employees in the United States and Europe will join Nestlé, the Swiss food giant.

Nestlé CEO Mark Schneider said in the official announcement that with Starbucks, Nescafe and Nespresso they bring together the world’s most iconic coffee brands. Nespresso maker Nestlé on Tuesday said it has sealed a deal to market the products of US coffee giant Starbucks around the world, outside of its cafes.

Nestlé, a Swiss food giant, had announced in May it would pay €6.13 billion for the rights to market Starbucks coffee globally. A Nescafe instant coffee producer made some 500 Starbucks employees in  Europe and the US to join Nestlé global team.

“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,”

Mr Schneider added.

Earlier, Swiss company Nestlé made another big sweet deal with Ferrero ($2.8 billion). On Tuesday, the top-management said that the deal will significantly boost Nestlé’s portfolio in North America. Under Schneider’s leadership, Nestlé has made coffee a key priority in its growth strategy, particularly in the US.

A new Nestlé strong leadership: Mark Schneider

Bloomberg News said Nestlé has struggled in the US for years. 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,”

Mr Johnson said.