Nestle set to sell first Starbucks coffee under $7.15 billion deal

VEVEY, Switzerland (Reuters) - Nestle will sell Starbucks-branded coffee at grocery stores and online in Europe, Asia and Latin America from this month as it seeks to increase its lead over rivals such as JAB. After last year's $7.15 billion cash deal for exclusive rights to sell the U.S

Reuters February 14, 2019 00:05:55 IST
Nestle set to sell first Starbucks coffee under $7.15 billion deal

Nestle set to sell first Starbucks coffee under 715 billion deal

VEVEY, Switzerland (Reuters) - Nestle will sell Starbucks-branded coffee at grocery stores and online in Europe, Asia and Latin America from this month as it seeks to increase its lead over rivals such as JAB.

After last year's $7.15 billion cash deal for exclusive rights to sell the U.S. chain's coffees and teas, Nestle will start selling Starbucks labelled coffee beans, roast and ground coffee and single-serve capsules for its Nespresso and Nescafe Dolce Gusto coffee makers.

These will be available at grocery stores and online in 14 markets, including Belgium, Brazil, Chile, China, Mexico, the Netherlands, South Korea, Spain and Britain, with more markets following later this year, the world's biggest food group said on Wednesday.

Asked whether the launch of Starbucks Nespresso capsules would help Nespresso return to double-digit growth, Patrice Bula, executive vice president and head of strategic business units, marketing, sales and Nespresso, told a media briefing: "Yes, I hope so, yes. We have huge ambitions."

He said he was also confident of accelerating Nestle's strong U.S. coffee business that was boosted by the Starbucks deal and saw strong potential in markets like India and China.

"It is a landmark for us, a new growth platform, a moment where we can accelerate in the premium segment," he said.

Starbucks, the world's biggest coffee chain, has been selling its coffee for use at home -- including a variety of roasts in whole beans, instant or ground versions as well as coffee pods for its Verismo brewers and JAB's Keurig K-Cup system -- across North America and in some international markets for years.

Nestle is building on this existing product range and taking it to new markets under the deal struck last May which allows Starbucks to focus on its cafes and Nestle, with its retail expertise, to bring Starbucks coffee to supermarket shelves around the world.

David Rennie, head of coffee, said Nestle could still consider strategic acquisitions in the coffee sector.

"Never say never, but we believe we have three iconic brands today and will focus on developing these."

Under last year's deal Starbucks, which is expanding in China and finally ventured into coffee-obsessed Italy in September, will have its out-of-home business managed by Nestle, while continuing to sell its ready-to-drink products directly.

Nestle is due to publish full-year results on Thursday.

(Reporting by Silke Koltrowitz; Editing by Alexander Smith and David Evans)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Oil rises 2% as OPEC complies with production cuts
Business

Oil rises 2% as OPEC complies with production cuts

By Jessica Resnick-Ault NEW YORK (Reuters) - Oil prices strengthened on Wednesday, as OPEC and its allies were seen complying with a pact to cut oil supply in September, even as concerns loomed that recovery in fuel demand will be stalled by soaring global coronavirus cases. Early in the day crude was boosted by a bullish stock market. Even as equities whipsawed on pandemic worries, oil stayed higher, buoyed by expectations that OPEC could staunch a supply glut

Tesla's back-to-back price cuts bring sticker on U.S. Model S below $70,000
Business

Tesla's back-to-back price cuts bring sticker on U.S. Model S below $70,000

By Tina Bellon and C Nivedita (Reuters) - Tesla Inc will further cut the price of its Model S "Long Range" sedan in the United States to $69,420, the electric carmaker's chief executive, Elon Musk, announced in a tweet https://bit.ly/2H0JCP0 on Wednesday. The anticipated drop marks the second time this week Tesla has cut the price for the high-end sedan, following a 4% cut of the Model S's price in the United States on Tuesday to $71,990.

Trump cites teenaged son's bout with coronavirus in calling for schools to reopen
World

Trump cites teenaged son's bout with coronavirus in calling for schools to reopen

By Jeff Mason DES MOINES, Iowa (Reuters) - Under siege over his handling of the novel coronavirus pandemic, President Donald Trump on Wednesday cited what he said was his son's mild bout of the virus as a reason why American schools should reopen as soon as possible. Trump made the comment about his son, Barron, as the president swept into Iowa on a mission to shore up support in battleground states that he won in 2016 but is in danger of losing to Democrat Joe Biden barely three weeks before the election. First lady Melania Trump announced in a statement earlier in the day that the virus that struck both her and her husband had also infected their 14-year-old son