Nestlé And Starbucks Are Joining Forces To Become A Giant Coffee Empire

Nestlé And Starbucks Are Joining Forces To Become A Giant Coffee Empire
What happens when two major coffee rivals work together?

Probably more coffee!

Nestlé announced that the company will be teaming up with Starbucks to sell and distribute the coffee chain's packaged products in supermarkets and restaurants around the world.

According to a statement by Nestlé, the company will pay Starbucks USD7.15 billion (RM28.2 billion) upfront to kick-start this new business.

The Swiss food and drink manufacturing conglomerate is eyeing Starbucks' packaged goods business which brings in a healthy annual revenue of USD2 billion (RM7.89 billion) each year.

So Nestlé is looking to reinforce their position as the biggest coffee company in the world.

Some Starbucks products can still be found only at the stores.
But for Starbucks lovers, don't worry. This alliance doesn't include any of your go-to Starbucks ready-to-drink beverages or products, so your favourite café still remains the same!

The good news is that this deal will include Nestlé's popular brands like Nescafe and Nespresso. And from next year onwards, we'll be getting Starbucks brand Nespresso and Dolce Gusto capsules!

Soon, we'll be getting Starbucks flavours.
Following this agreement, about 500 Starbucks employees will join Nestlé once everything is finalised.

What do you think about this new affiliation? Are you looking forward to more affordable Starbucks products under Nestlé?



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