Starbucks has announced plans to sell its Seattle’s Best Coffee brand to Nestlé.
According to Starbucks, the transaction will further strengthen the Global Coffee Alliance established by Starbucks and Nestlé in 2018 to grow the global reach of Starbucks brands in CPG and foodservice.
“We continue to deepen our partnership with Nestlé to deliver the best of the Starbucks Experience to our customers in channels outside of our retail stores,” said Michael Conway, group president of Starbucks International and channel development at Starbucks, in a statement. “We’re confident that Nestlé will continue to grow the Seattle’s Best Coffee brand as we focus on our strategy to elevate the premium coffee experience for consumers through the Starbucks brand.”
Since forming the Alliance, the companies have introduced premium coffee products to new markets, including whole bean coffee, roast, and ground coffee as well as Starbucks capsules for Nespresso and Nescafé Dolce Gusto systems. Nestlé currently distributes Starbucks consumer products and foodservice beverages across more than 80 markets outside Starbucks retail stores under terms of the alliance.
“Our partnership with Starbucks has confirmed Nestlé’s leading position in the dynamic and growing global coffee market,” said David Rennie, head of Nestlé coffee brands, in a statement. “With the well-known Seattle’s Best Coffee brand, we will continue to build our leadership in coffee by offering consumers more choice for their everyday coffee.”
Nestlé and Starbucks will continue to work together to develop new products and go-to-market strategies to amplify the reach and experience of the Starbucks brand locally and globally. The transaction is expected to be complete by the end of the year; its terms are confidential.
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Image: Starbucks