Nestlé and Starbucks have announced an extension to their existing partnership, which will see the firms launch ready-to-drink coffee beverages in markets across Southeast Asia, Oceania and Latin America.
Nestlé and Starbucks signed a global licensing deal in 2018 that granted Nestlé the perpetual rights to market Starbucks packaged coffee and food service products globally.
The initial agreement excluded goods sold in Starbucks coffee shops and ready-to-drink products.
Nestlé Looks To Build
"With our expansion plans into ready-to-drink coffee, Nestlé will continue to build on its global leadership in coffee and will benefit from new growth opportunities in a segment that is developing rapidly and attracting new and younger consumers," commented David Rennie, head of Nestlé coffee brands, who added that the partnership confirms "Nestlé’s leading position in the global coffee business".
Under the extended partnership, Nestle and Starbucks will roll out products like Starbucks Frappuccino and Doubleshot to select markets in Southeast Asia, Oceania and Latin America from next year and also develop new products, the two partners said.
Nestle's sales of Starbucks products reached CHF 2.7 billion (€2.5 billion) last year.
Extend Starbucks' Reach
“We continue to strengthen our partnerships to extend the reach of the Starbucks brand globally. With its historical local footprint and exceptional execution capabilities, Nestlé is an ideal partner to help us develop and offer tailored Starbucks coffee beverages in these regions,” added Michael Conway, group president International and Channel Development, Starbucks.
“Our partnership has proven highly successful for both companies, and we are confident that this new collaboration will help us meet our customers’ evolving needs.”