Nestle Buys Right to Sell Starbucks Coffee, Paying $7.1 Billion

Nestle Buys Right to Sell Starbucks Coffee, Paying $7.1 Billion

The latest updates from Nestle and Starbucks prove that the former is planning to enhance its overall reach by selling Starbucks coffee. This deal is going to affect the overall reach and availability of Starbucks products, not just the coffee drinks. With Nestle having the right to distribute and sell the coffee giant’s products, the consumers can expect Starbucks products in various sources, in different forms as well. As of now, Starbucks products are available only through the company’s official outlet, which will change, with the new deal has effect. Both the companies are expected to work together as newer products are marketed via channels new and traditional.

Kevin Johnson, who is the CEO of Starbucks, said that “This global coffee alliance will bring the Starbucks experience to the homes of millions more around the world through the reach and reputation of Nestlé,” It seems that both the companies are seeing benefits via this deal. According to the blog post published by Nestle, the company would receive the contribution from 500 Starbucks employee and Nestle believes that the inclusion of Starbucks’ products will have a positive impact on the company’s earnings, starting from 2019 itself. Of course, for coffee lovers, there are some good news.

One of the major benefits will be for those who own Nespresso machines at home. With this deal in effect, it would become possible to purchase Starbucks Nespresso pods and use them with the machine to get the unique taste of Starbucks. Also, the other products of Starbucks can be availed from retail stores, since the Swiss giant would be using the distribution network for better reach for Starbucks’ products. It needs to be noted, however, that the deal does not make Nestle products available in Starbucks shop. Also, the whole addition of services offered by Nestle would be subjected to the licensing rules of Starbucks.

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