Nestle and Starbucks extend partnership to ready-to-drink coffee

Nestle (NESN.S) and Starbucks (SBUX.O), the world’s largest coffee company, are expanding their cooperation to introduce ready-to-drink coffee products in Southeast Asia, Oceania, and Latin America, according to the two companies.

In 2018, Nestle and Starbucks agreed to a worldwide licence agreement that gave Nestle the exclusive global rights to market Starbucks packaged coffee and food service products. Items sold at Starbucks coffee shops and ready-to-drink beverages were initially exempt from the agreement.

“With our expansion plans into ready-to-drink coffee, Nestle will continue to build on its global leadership in coffee while benefiting from new growth opportunities in a segment that is rapidly developing and attracting new and younger consumers,” David Rennie, head of Nestle coffee brands, said late Monday in a statement.

Nestle and Starbucks announced they will roll out items including the Starbucks Frappuccino and Doubleshot to certain countries in Southeast Asia, Oceania, and Latin America starting next year, as well as create new products, as part of their expanded cooperation.

Last year, Nestle’s Starbucks sales were 2.7 billion Swiss francs ($2.95 billion).

Read more • reuters.com

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