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Nestle to pay Starbucks $7.15 bn for rights to sell its products worldwide

While Starbucks holds the crown in the $13.8 billion US coffee market, Nescafe and Nespresso hold the top ranks globally, according to Euromonitor

As other US companies flee China, Starbucks marches in
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Starbucks is opening more than 500 stores a year in China, which amounts to more than one new store a day. Photo: iSTOCK

Bloomberg
Nestle SA and Starbucks Corp. are joining forces to rejuvenate their coffee empires.

Nestle will pay the Seattle-based chain $7.15 billion upfront in cash for the rights to sell Starbucks coffee products in retail and food-service channels, the companies said Monday. Nestle will use the Starbucks brand in its Nespresso and Dolce Gusto capsule systems next year.

The deal is Nestle’s first tie-up with a major rival in coffee. Nestle expects the deal to contribute positively to its earnings per share and organic growth targets from 2019. The business has annual sales of $2 billion. Starbucks said it will use the proceeds

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