Swiss-based food giant Nestlé will pay Starbucks $7.15 billion in cash for the rights to sell the US coffee chain's products around the world, tying a premium brand to Nestlé's global distribution muscle.
The deal, on Monday, for a business with $2 billion in sales reinforces Nestlé's position, as the world's biggest coffee company tries to fortify its place atop a fast-changing market.
It is a bold stroke by Nestlé chief executive Mark Schneider, who has made coffee a strategic priority as he tries to convince uneasy shareholders, including activist Third Point, that he can boost the sprawling group's performance.
