USA – Keurig Dr Pepper (KDP) has entered into a long-term, strategic agreement with Nestlé USA to manufacture and distribute Starbucks branded packaged coffee in K-Cup pods in the U.S. and Canada.
The new agreement with Nestlé, which acquired the rights in August 2018 to market and distribute Starbucks CPG and Foodservice products outside of Starbucks coffee shops globally, will replace the existing K-Cup pod agreement between KDP and Starbucks following a transition period.
Keurig Dr Pepper Chief Commercial Officer, Derek Hopkins commented, ” [This] announcement with Nestlé recognizes the success of the Keurig and Starbucks strategic relationship, which dates back to 2011.
“It also underscores the mutually-beneficial nature of that partnership and the significant, untapped opportunities that still exist for the single serve coffee category in North America.”
“We are excited to enter into an agreement directly with KDP that enables us to continue the strategic partnership and accelerate growth of the Starbucks brand on the Keurig K-Cup platform,” said Tony Matta, President of Nestle Coffee Partners.
Financial terms of the agreement between KDP and Nestlé were not disclosed.
Starbucks and Nestlé have also announced another collaborative innovation as a result of the global coffee alliance, the launch of Starbucks Premium Instant Coffee, available in Japan, China, Europe, Latin America, and Asia Pacific.
Starbucks Premium Instant Coffee will be available in a variety of choices including two black coffees, Medium Roast and Dark Roast, along with five coffees inspired by signature Starbucks beverages; Cappuccino, Caffè Latte, Caffè Mocha, Caramel Latte, Vanilla Latte, and tea-based Matcha (Japan exclusive).
Through the global coffee alliance with Nestlé, the coffee retail giant has continued to elevate and expand the global reach to consumers.
In 2019, the global coffee alliance enabled Starbucks to grow our global share in at home coffee by accelerating the compay’s leadership position in North America.
Starbucks has also been able to expand the international presence of Starbucks coffee through the launch of new platforms and entering new markets.
Since forming the alliance, the company said that it has expanded at an unprecedented accelerated pace and will be in 50 more markets by the end of March.
In addition to the Starbucks partnership with Nestle, the coffee chain recently launched a new Ready-to-Drink (RTD) Nitro Cold Brew available in cans at grocery retailers and select Starbucks locations in the US and developed in partnership with PepsiCo.
The nitrogen infused RTD Nitro Cold Brew is available in three velvety smooth flavors: Black, Dark Caramel and Vanilla Sweet Cream.