This transaction also strengthens the ”Global Coffee Alliance”
Nestle, the Swiss multinational food and beverage processing conglomerate has announced that it will acquire Seattle’s Best Coffee brand from the US Coffee chain Starbucks. This transaction is part of Nestle’s emphasis on making continuous rewarding advancements in the coffee category and strengthens the Global Coffee Alliance by granting both the companies to concentrate on their underlying strengths.
Seattle’s Best Coffee’s amenable line-up of whole bean, roast, ground packaged coffee, and K-Cup pods are available in various roasts and flavour contours across both food service and grocery networks. In addition to Starbucks packaged coffees distributed by Nestle under the Global Coffee Alliance, Seattle’s Best Coffee unites Nestle’s roster of beloved coffee brands in the United States, including Nescafe’s ‘‘Nespresso’’, and ‘‘Blue Bottle’’. The add-on enhances the strength of Nestle’s North American coffee portfolio by further expanding the company’s position in the category.
In October, the Swiss multinational conglomerate reported its nine-month sales for 2022 with its total reported sales increased by 9.2% to CHF 69.1 billion.
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Starbucks continues to strengthen its partnership with Nestle to provide the finest of the Starbucks Experience to their customers in networks out of their retail stores, said Michael Conway, Group President, International, and Channel Development at Starbucks.
Starbucks is assured that Nestle would continue to expand the ‘‘Seattle’s Best Coffee’’ brand as it focuses on its strategy to promote the finest coffee experience for consumers through the Starbucks brand, Conway added.
The partnership with Starbucks has confirmed Nestle’s leading position in the dynamic and growing global coffee market, said David Rennie, Head of Nestle Coffee Brands. In addition to the prominent Seattle’s Best Coffee brand, the Swiss multinational conglomerate would continue building its leadership in coffee by offering consumers more freedom of choice for everyday coffee, he said.
Nestle and Starbucks’ wide range of premium coffee products
Since the formation of Global Coffee Alliance in 2018, Nestle and Starbucks have brought a wide range of premium coffee products to new markets at a fast pace – including whole bean coffee, roast, and ground coffee as well as Starbucks capsules for ‘‘Nespresso and Nescafe Dolce Gusto’’ proprietary systems. The Swiss multinational conglomerate delivers Starbucks consumer commodities and food service beverages throughout over eighty markets out of Starbucks retail stores under the ‘‘Global Coffee Alliance’’. The overall global sales of Starbucks products distributed by the Swiss multinational conglomerate in 2021 achieved CHF 3.1 billion.
Through the Global Coffee Alliance, Nestle and Starbucks would continue to work together closely to develop new, innovative products and go-market strategies that will strengthen the movement and spread out the distinguishing experience of the Starbucks brand locally and worldwide.
The Swiss multinational conglomerate anticipates closing this transaction by end of 2022, subject to respective Board and customary regulatory authorizations. Both businesses have consented to carry out the terms of this transaction confidential.