Nestlé has expanded its partnership with Starbucks to bring ready-to-drink (RTD) coffee beverages to select markets across Southeast Asia, Oceania and Latin America.
The new collaboration builds on a three-year partnership between the firms, following the establishment of a global coffee alliance in 2018 which saw Nestlé purchase the exclusive rights to market Starbucks coffees and teas around the world.
Since its formation, the companies have released a variety of products including whole bean, roast and ground coffee, refrigerated coffee creamers, cold brews, as well as Starbucks capsules for Nespresso and Nescafé Dolce Gusto systems.
Under the new agreement, Nestlé and Starbucks plan to bring the RTD coffees to consumers from 2022 through a variety of channels, including online platforms. The deal will initially focus on its most popular products including Starbucks Frappuccino and Starbucks Doubleshot.
The companies also announced that they will continue to develop new and innovative products under the licencing agreement.
“We continue to strengthen our partnerships to extend the reach of the Starbucks brand globally. With its historical local footprint and exceptional execution capabilities, Nestlé is an ideal partner to help us develop and offer tailored Starbucks coffee beverages in these regions,” said Michael Conway, group president of international and channel development at Starbucks.
David Rennie, head of Nestlé coffee brands, added: “With our expansion plans into RTD coffee, Nestlé will continue to build on its global leadership in coffee and will benefit from new growth opportunities in a segment that is developing rapidly and attracting new and younger consumers.”
In Nestle’s 2020 full-year results, sales of Starbucks products stood at CHF 2.7 billion (approx. $2.94 billion), representing double-digit organic growth compared to 2019. This acceleration continued in the first quarter of 2021, as coffee proved to be the largest contributor of growth to Nestle’s revenue due to strong demand in at-home channels.
© FoodBev Media Ltd 2021
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