Multinational giant Nestle said on Tuesday that the company made a deal with US Coffee giant to market its products worldwide, out of its cafes.
Switzerland based Food and consumers products giant Nestle which also makes Nescafe, the company announced in May that it would pay $7.15 billion to get the right to market Starbucks coffee across the world.
Roughly 500 employees from Starbucks in the US and EU will join Nestle for this cause, the Swiss company said in a statement.
Nestle CEO Mark Schneider said in a statement, “With Starbucks, Nescafe, and Nespresso we bring together the world’s most iconic coffee brands.” The collaboration between the two companies and their teams resulted in the quick completion of the agreement, this will roll out the rug for further growth opportunities, he added.
Nestle believes that the deal will help to boost Nestlé’s portfolio in North America. According to a report published by Bloomberg, Nestlé has been struggling to make a strong position in the United States for years; under Schneider’s leadership, Nestlé has made the coffee its first priority in its growth strategy. The company has bought majority shares in California-based high-end brand “Blue Bottle Coffee” and bought Texan brand Chameleon Cold-Brew as well.
The CEO Starbucks, Kevin Johnson also highlighted the importance of deal and said, the firm is also looking for a major boost under this deal. The deal would bring together the world’s leading coffee brand, the world’s largest food & Beverage Company and the world’s largest home-based and single-serve coffee machines. This would help Starbucks to become a global brand while delivering the long-term value for its shareholders, he added.