In August 2018 US-based food and beverage company Starbucks Corporation (hereinafter referred to as ‘Starbucks’) and Switzerland-based food company, Nestlé S.A. (hereinafter referred to as ‘Nestlé’) signed a global Licensing Agreement worth US$ 7.15 billion that grants Nestlé the perpetual global license to market, sell and distribute certain Starbucks coffees and teas at retail and foodservice outlets outside of Starbucks stores around the world. 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. However, at that time the agreement does not include Starbucks’ ready-to-drink products, which are subject to other licensing agreements, or sales of any products within Starbucks coffee shops.
This global coffee alliance between Nestlé and Starbucks had marked a significant strategic milestone growth for both since 2018. Acknowledging the growth and also to meet the changing consumer needs, Nestlé and Starbucks extended their partnership on 27th July 2021 by launching ready-to-drink coffee beverages in markets across Southeast Asia, Oceania, and Latin America. Under the extended partnership, Nestlé and Starbucks will roll out products like Starbucks Frappuccino and Doubleshot to select markets in Southeast Asia, Oceania, and Latin America and also develop new products.
The expansion of the alliance between Nestlé and Starbucks into Ready-to-drink Coffee will build on its global leadership in coffee, will benefit new growth opportunities, and attracting new and younger consumers.
Comments
Post a Comment