Nestlé, Starbucks formalise licensing deal | Progresiv
Nestlé and Starbucks have announced the closing of a 7 billion dollars deal that grants the Swiss giant the perpetual rights to market, sell, and distribute Starbucks-branded products globally (outside of the latter’s coffee shops). 
The two sides said they will “work closely together” on the existing Starbucks range of coffee and tea, and will also “capitalise on the experience and capabilities of both companies to work on innovation with the goal of enhancing its product offerings”. The deal does not include Starbucks’ ready-to-drink bottled range, which will continue to be distributed by PepsiCo.
The two companies said they expect the deal to significantly strengthen Nestlé’s coffee portfolio in the North American premium roast and ground and portioned coffee business, while offering global expansion opportunities in grocery and foodservice for the Starbucks brand.
Around 500 Starbucks employees in the US and Europe will be transferred to Nestlé, with most of them being based in Seattle or in London. The international expansion of the business will be led from Nestlé’s global headquarters in Vevey, Switzerland. (www.kamcity.com)
