The transaction will allow Starbucks to continue to focus on its premium coffee segment in both at-home and away-from-home channels as part of its ‘Reinvention’ plan which includes opening 2,000 drive-thru and pick-up-only stores.
“Starbucks sees significant opportunity for further growth through portfolio expansion, innovation and leveraging Starbucks partnership expertise,” said Starbucks CEO Howard Schultz.
Starbucks reaffirms focus on premium coffee and away-from-home channels
Starbucks acquired Seattle’s Best for $72m in 2003 to grow its specialty coffee portfolio. In 2018, Nestlé and Starbucks formed the Global Coffee Alliance to expand and elevate the at-home and away-from-home coffee and related categories.
As part of the alliance, Nestlé obtained the rights to market, sell, and distribute Seattle’s Best and other Starbucks-owned brands with Starbucks remaining as the official owner of the brand.
Since forming the Global Coffee Alliance in 2018, Nestlé and Starbucks have introduced a wide range of 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 proprietary systems.
Today, Nestlé distributes Starbucks consumer products and foodservice beverages across more than 80 markets outside Starbucks retail stores under the Global Coffee Alliance.
“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, Starbucks International and Channel Development.
