Nestlé, Starbucks Close Deal For License Of Starbucks Consumer Packaged Goods

(RTTNews) - Nestlé (NSRGY.PK, NSTR.L) and Starbucks Corp. (SBUX) announced the closing of the deal granting Nestlé the perpetual rights to market Starbucks Consumer Packaged Goods and Foodservice products globally, outside of the company's coffee shops.

The companies noted that about 500 Starbucks employees in the United States and Europe will join the Nestlé family, with the majority based in Seattle and London. The international expansion of the business will be led from Nestlé's global headquarters in Vevey, Switzerland.

Under the alliance, the two companies will work closely together on the existing Starbucks range of roast and ground coffee, whole beans as well as instant and portioned coffee.

The agreement significantly strengthens Nestlé's coffee portfolio in the North American premium roast and ground and portioned coffee business. It also unlocks global expansion in grocery and foodservice for the Starbucks brand, utilizing the global reach of Nestlé.

The agreement covers Starbucks packaged coffee and tea brands, such as Starbucks, Seattle's Best Coffee®, TeavanaTM/MC, Starbucks VIA Instant, Torrefazione Italia coffee and Starbucks-branded K-Cup pods. It excludes Ready-to-Drink products and all sales of any products within Starbucks coffee shops.