Starbucks and Nestle have announced their $7 billion relationship Tuesday. Nestle now reserves the rights to market Starbucks’ packaged goods worldwide.
The contract includes, but is not limited to, Seattle’s Best, Teavana, and Starbucks’ K-cup pods. The agreement does not cover ready-made drinks and items sold at Starbucks locations.
“With Starbucks, Nescafé and Nespresso we bring together the world’s most iconic coffee brands,” Nestlé CEO Mark Schneider, said in a statement.
Starbucks’ president and CEO also shared his excitement with the deal saying the deal would amplify the brands exposure. While Starbucks is a world-class brand of its own Nestle is still the largest food and beverage company in the world.
In lieu of the new partnership nearly 500 Starbucks employees in the United States and Europe will transfer their jobs to work on the behalf of Nestle. Most of the workers will be based in Seattle and London.Free contest software by Rewards Fuel