Logo of Phnom Penh Post newspaper Phnom Penh Post - Swiss firm Nestle seals deal to market Starbucks coffee

Swiss firm Nestle seals deal to market Starbucks coffee

Content image - Phnom Penh Post
Starbucks coffee pod products sit on the shelf at a Target store in Lower Manhattan, May 7. Drew Angerer/Getty Images/AFP

Swiss firm Nestle seals deal to market Starbucks coffee

Nespresso maker Nestle on Tuesday said it has sealed a deal to market the products of US coffee giant Starbucks around the world, outside of its cafes.

Swiss food giant Nestle, which also produces Nescafe instant coffee, had announced in May it would pay $7.15 billion (€6.13 billion) for the rights to market Starbucks coffee globally.

Under the deal, some 500 Starbucks employees in the United States and Europe will join Nestle, the Swiss company said in a statement.

“With Starbucks, Nescafe and Nespresso we bring together the world’s most iconic coffee brands,” Nestle CEO Mark Schneider said.

“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.

According to the statement, the deal will significantly boost Nestle’s portfolio in North America.

Bloomberg News said Nestle has struggled in the US for years.

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.

MOST VIEWED

  • Phnom Penh unveils rules for post-lockdown transition

    The Phnom Penh Municipal Administration issued a set of detailed guidelines for the seven days to May 12 after the capital emerges from lockdown at the onset of May 6. In the 14-page document signed by municipal governor Khuong Sreng released on the evening of May 5, the

  • SBI LY HOUR Bank Launches Cross Border Money Transfer Service between Cambodia and Vietnam on RippleNet, utilizing DLT

    SBI LY HOUR Bank Plc and Hanoi-based Tien Phong Commercial Joint Stock Bank (TPBank) on Friday launched the first Cambodia-Vietnam money transfer service in real currency via RippleNet, provided by SBI Ripple Asia Co Ltd to provide safe, fast and convenient services. SBI LY HOUR

  • Gov’t issues guidelines as lockdown nears end

    The government has issued a five-page set of instructions to be enforced when the three-week lockdown of Phnom Penh and adjacent Takmao town in Kandal province ends on May 6. According to an announcement signed by Prime Minister Hun Sen on May 4, the instructions cover a

  • Cambodia ready to exit LDC status

    Cambodia is well-prepared to minimise economic risks when it graduates from its Least Developed Countries status, according to a senior official at the Ministry of Commerce on May 7. Four LDCs – Cambodia, Laos, Bangladesh and Nepal – met at a virtual workshop last week to explore potential

  • Nine US franchises eye Cambodia debut

    Nine famous US franchising companies are looking for business opportunities and expansion into Cambodia to build a footstep for a strong foundation in Southeast Asia. The US embassy in Phnom Penh, in partnership with the US Foreign Commercial Service and with support from the American

  • Lost in translation: ‘Starvation’ in capital’s designated red zones

    “DACH bay” is a Khmer slang meaning a “loss of income”, that could also be literally translated to «deprived of rice”, which alludes to starvation. However, civil society organisation (CSO) officials have independently confirmed the government’s prior assertions that there are no cases of