Nestle launches range of Starbucks coffee products after US$7.1b deal

SWITZERLAND – Nestle has announced the global launch of a new range of coffee products under the Starbucks brand following last year’s US$7.15 billion tie-up deal to sell Starbuck’s coffees and teas.

The new range involves 24 products including whole bean and roast and ground, as well as the first-ever Starbucks capsules developed using Nespresso and Nescafé Dolce Gusto proprietary coffee and system technologies.

The global alliance with the US coffee chain, launched in August 2018 will see Nestle commercialize the new products in grocery sores and on online platforms in various markets.

These include markets across Asia, Europe, Latin America, Middle East and the U.S., covering Belgium, Brazil, Chile, China, Mexico, the Netherlands, South Korea, Spain and Britain, with plans to roll them out in other markets later in the year.

The new range of coffee products includes a variety of signature Starbucks blends and single-origin coffees, as well as a selection of classic beverages such as Caramel Macchiato and Cappuccino.

“We are very pleased to be able to provide our premium high-quality Starbucks coffees to customers at home across the world’s most popular single-serve platforms, the Nespresso and Nescafé Dolce Gusto systems,” said John Culver, group president, Starbucks International, Channel Development and Global Coffee and Tea.

“Today’s announcement further extends the global reach of Starbucks brand as we expand into new channels as part of a global coffee alliance with Nestlé.”

According to Nestle, the products are made from 100% high-quality arabica coffee, ethically sourced from farmers in the world’s premier coffee growing regions.

The global alliance which gave Nestle exclusive rights to market Starbucks Consumer Packaged Goods and Foodservice coffee and tea products around the world, is hoped to help the food and beverage giant return to double-digit growth in the US business.

“Our two teams have done an outstanding job in just six months developing a range of new and exciting premium coffees, crafted with care and passion, combining Nestlé’s coffee and system know-how with the Starbucks coffee, roasting and blending expertise,” said Patrice Bula, Executive Vice President, Head of Strategic Business Units, Marketing, Sales and President of Nespresso.

“With Nescafé, Nespresso and Starbucks, Nestlé now has the best coffee portfolio to delight consumers around the world.”

Starbucks, which is the world’s largest coffee chain, presents a strong product portfolio while Nestle rakes in expertise in retail.

Under the deal, Starbucks will have its out-of-home business managed by Nestle, while continuing to sell its ready-to-drink products directly.

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