Nestlé has reached an agreement with Starbucks to acquire Seattle’s Best Coffee.
The transaction, which was announced alongside Nestlé’s trading update today (19 October), strengthens the company’s portfolio of coffee brands in the United States, which includes Nescafé, Nespresso, and Blue Bottle. No financial details were disclosed.
Seattle’s Best Coffee was founded in 1970 by brothers Jim and Dave Stewart, both natives of Seattle. It has been a part of the Starbucks empire since 2003 and sells a “approachable” line of whole bean, roast, and ground packaged coffee, as well as single-use pods, throughout the foodservice, grocery, and mass retail channels.
The transaction, which is expected to close later this year, is the most recent agreement between the two coffee giants since their 2018 signing of a “global coffee alliance.”
The $1.75 billion agreement gave Nestlé the right to market, sell, and distribute Starbuck’s branded products in all global at-home and away-from-home channels. Since then, the two companies have collaborated to bring new products to market, including Starbucks branded Nespresso and Nescafé Dolce Gusto pods.
Under the terms of the agreement, Nestlé currently distributes Starbucks consumer products and foodservice beverages in 80 markets. In 2021, global sales of Nestlé-distributed Starbucks products reached CHF 3.1 billion (US$3.11 billion).