500 Starbucks Employees will Join Nestle in Consumer-Goods Partnership

August 31, 20189:24 am550 views

Coffee machine Nespresso manufacturer, Nestle said on Tuesday (Aug 28) that it has signed a deal with US’ biggest coffee house chain Starbucks. Under the new coalition, Nestle will market the products of Starbucks around the world, outside of its cafes.

Earlier, Swiss food giant Nestle had announced in a statement released in May that it would pay $7.15 billion (6.13 billion euros) for the rights to market Starbucks coffee globally. In addition, the deal also includes 500 Starbucks employees in the US and Europe to join Nestle company, Live Mint reports.

Nestle CEO Mark Schneider said, “With Starbucks, Nescafe and Nespresso we bring together the world’s most iconic coffee brands. The outstanding collaboration between the two teams resulted in a swift completion of this agreement, which will pave the way to capture further growth opportunities.”

According to the statement, the deal will significantly boost Nestle’s portfolio in North America. Under Schneider’s leadership, Nestle has made coffee a key priority in its growth strategy, particularly in the US. Since the CEO took over in January 2017, the group has bought a majority stake in California-based high-end brand Blue Bottle Coffee and acquired Texan brand Chameleon Cold Brew.

Starbucks CEO Kevin Johnson said his firm is also set for a major boost under the deal. “Bringing together the world’s leading coffee retailer, the world’s largest food and beverage company, and the world’s largest and fast-growing installed base of at-home and single-serve coffee machines helps us amplify the Starbucks brand around the world while delivering long-term value creation for our shareholders,” Johnson said.

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