By Calli Gregg I have been known to enter a few Starbucks locations every now and again, okay you got me everyday. But it seems now that Nestlé and Starbucks Corporation have announced the closing of the deal granting Nestlé the perpetual rights to market Starbucks Consumer Packaged Goods and Foodservice products globally, outside of the company’s coffee shops it might now be easier to get my Caramel Macchiato. Well for my Caramel Mach, I will still have to make my way to the retail location and watch my Starbucks’ baristas use freshly steamed milk, vanilla syrup and espresso with just the right amount of caramel drizzled on top, as the deal between the two companies has them working together on the existing Starbucks range of roast and ground coffees, whole beans products like Starbucks®, Seattle’s Best Coffee®, as well their instant and portioned coffee such as Starbucks VIA® Instant, Torrefazione Italia® coffee and Starbucks-branded K-Cup® pods. It does however exclude
all Ready-to-Drink products for the time being.
This new partnership will look to capitalize on the experi- ence and capabilities of both Nestlé and Starbucks allowing them to work on innovation with the goal of enhancing its product offerings for coffee lovers globally. This agreement is a win-win for both companies as it strengthens Nestlé’s coffee portfolio in the North American premium roast and ground and portioned coffee business, plus it opens global expansion in grocery and foodservice industries for the Starbucks brand, utilizing the global reach of Nestlé. It is said that about 500 of Starbucks employees in the United States and Europe will now join Nestlé in this agree- ment with the majority of those employee moves based in Seattle and London with the international expansion of the business being led from Nestlé’s global headquarters in Vevey, Switzerland.
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SEPTEMBER 2018 • SPOTLIGHT ON BUSINESS MAGAZINE
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