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Swiss food and beverage giant Nestlé wants to buy Starbucks' Seattle's Best Coffee brand, one of the most famous coffee brands in the world
Food and beverage giant Nestlé, announced yesterday (19/10), which will acquire, for an undisclosed amount, the Seattle's Best Coffee brand from Starbucks, one of the most famous coffee brands in the world, which has positioned the Swiss multinational as a leader in the dynamic and growing global coffee market.
The two companies formed the Global Coffee Alliance in May 2018 in an agreement worth US$7,1 billion, with the Swiss company distributing Starbucks-branded coffee products in more than 80 markets outside of Starbucks retail stores.
Nestlé said the acquisition of Seattle's Best Coffee "adds depth" to the company's North American coffee portfolio, where it currently distributes packaged retail products by Starbucks, Nescafé, Nespresso and Blue Bottle Coffee.
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“Our partnership with Starbucks confirmed Nestlé's leadership position in the dynamic and growing global coffee market. With the well-known Seattle's Best Coffee brand, we will continue to build our leadership in coffee, offering consumers more choices for everyday coffee," said David Rennie, head of Nestle Coffee Brands.
Coffee products contributed more than $25 billion of Nestlé's sales in 2021.
Coffee products contributed more than US$25 billion, or approximately 27%, of Nestlé's sales in 2021.
In July 2022, the company introduced the Starbucks At Home instant coffee line and We Proudly Serve Starbucks Coffee program in Vietnam, increasing Starbucks premium instant coffee distribution in China, Japan, Europe, Latin America and Asia Pacific.
Starbucks acquired the Seattle's Best Coffee in 2003 for $72 million. The deal gave Starbucks a lower price tag and access to Seattle's best contracts with grocers and food service providers.
Starbucks plans to invest more than R$2 billion to make its stores more efficient
But Starbucks is currently focused on an expensive overhaul of its North American stores. The company said last month it plans to spend $450 million over the next year to make its stores more efficient.
The company also spent more than $1 billion last year, boosting the workers wages and benefits as it tries to pull out of a campaign to unionize its stores.
“We are confident that Nestlé will continue to expand the Seattle's Best Coffee brand as we focus on our strategy to elevate the premium coffee experience for consumers through the Starbucks brand,” said Michael Conway, President, Development Group Starbucks channels, in a statement.
Nestlé and Starbucks said they expect the transaction to close later this year.
