Nestle partners with Starbucks to market coffee products globally
As part of a global alliance, Nestle strikes a deal to market Starbucks' coffee products outside the Starbucks cafes, internationally.
Nestle agrees to pay Starbucks US$7.15 billion for the marketing rights. This deal can be considered a response to the increasing competition in the branded coffee space.
The Swiss-based FMCG giant is synonymous with coffee globally, while Starbucks is a market leader in the US. This deal will bring together three major coffee brands namely Starbucks, Nescafe and Nespresso. The agreement is subject to regulatory approval and excludes sales of products within Starbucks coffee shops.
Meanwhile, the stock of Nestle's group Indian entity, Nestle India Limited was trading at Rs. 9091.40 per share, down by 0.13 per cent on Monday at 11:13 hours.