Swiss-based confectionery giant Nestlé has announced that it and Starbucks have closed their agreement which will now see Nestlé take on approximately 500 employees from the global coffee chain.
Most of the jobs will be based in the United States and Europe, London and Seattle in particular, and the expansion will be led from Nestlé's global headquarters in Switzerland.
In May, the two companies agreed to a deal that grants Nestlé the exclusive rights to sell the US coffee company’s packaged coffees and teas around the world.
The deal ties a premium brand to Nestlé global distribution muscle, and gives it a much-needed boost in the US where it is reported to be struggling somewhat. It will also give Starbucks an entrance to the grocery and foodservice markets through Nestlé's portfolio.
The deal, worth $7.15 billion in cash, will see the two companies will work closely together on the existing Starbucks range of roast and ground coffee, whole beans as well as instant and portioned coffee.
The two groups wish to combine their knowledge, skills, and experiences to enhance its offering to coffee lovers by bringing together the most iconic coffee brands.
"This partnership demonstrates our growth agenda in action, giving Nestlé an unparalleled position in the coffee business with a full suite of innovative brands. With Starbucks, Nescafé, and Nespresso we bring together the world’s most iconic coffee brands," said Mark Schneider, Nestlé CEO.
"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," he added.
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. It excludes Ready-to-Drink products and all sales of any products within Starbucks coffee shops.
© 2018 Checkout – your source for the latest Irish retail news. Article by Aidan O’Sullivan. Click subscribe to sign up for the Checkout print edition.