Nestle's first Starbucks-branded products to go on sale under $7B deal

By Food and BeverageFOXBusiness

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Nestle is set put its first round of Starbucks-branded coffee products on store shelves and online abroad, following its exclusive $7.15 billion deal with the U.S. coffee giant last year.

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The new items, which have yet to be revealed, are set to be available at grocery stores and online in 14 markets, including Belgium, Brazil, Chile, China, Mexico and the Netherlands this month, with more markets, including the U.S. expected to follow later this year.


Last August, Nestle first announced its $7.15 billion alliance with Starbucks for the right to market its products. The companies said the deal is an attempt to leverage each other’s strengths and help both with scaling.

The deal is a huge win for Starbucks as Nestle has the capacity to expand the American company's name into many more markets around the world. Additionally, it’s a big win for Nestle as the transaction is significant step in growing its coffee business, which is the company’s largest high-growth category.

The two companies said they have developed more than two dozen new products, including copycat Starbucks-branded Nespresso capsules that are compatible with the Nespresso and Nescafe Dolce Gusto systems.

Patrice Bula, president of Nespresso, said Starbucks along with its Nescafe and Nespresso brands has now created the “best coffee portfolio” in the world.


Other products include a variety of signature Starbucks blends and single-origin coffees, as well as a selection of classic beverages such as Caramel Macchiato and Cappuccino.