Nestlé is buying the rights to market, sell and distribute Starbucks packaged coffee and tea around the world, the two companies announced on Monday.
The $7 billion deal is for Starbucks, Seattle’s Best Coffee, Starbucks Reserve, Teavana, Starbucks VIA and Torrefazione Italia. Those brands will now be included in Nestlé’s K-cup pods line-up.
“This is a great day for coffee lovers around the world,” proclaimed Nestlé CEO Mark Schneider.
The deal gives Nestlé, known for its Nescafé and Nespresso coffees, a bigger presence in U.S. supermarkets. For Starbucks, it funnels their packaged brands into Nestlé’s global distribution network.