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Nestle to Launch Sales of Starbucks Coffee in January image

Nestle to Launch Sales of Starbucks Coffee in January

Nestle, which completed its $7.15 billion licensing deal with Starbucks in August, will launch sales of its ground, roast and K-cup coffee in January about six months ahead of original plans, Nestle executives told analysts today as it released nine-month financial results. The pact covers all distribution globally outside Starbucks’ coffee shops.

The deal, which encompasses the Starbucks, Seattle’s Best Coffee, Teavana, Starbucks Via and Torrefazione Italia brands, closed Aug. 27, ahead of original plans for completing the agreement by year-end. Nestle also sells coffee under the Nescafe and Nespresso brands.

With the license, Nestle gets a business that currently generates about $2 billion in annual revenue. The agreement excludes ready-to-drink products (for which PepsiCo is the licensee) and sales through Starbucks’ own shops, where Starbucks remains the supplier.

The packaged coffee business previously was licensed to Kraft Foods in 1998, before switching to Acosta Inc. in 2011.

Contact:

Starbucks, John Culver, Group President of International, Channel Development and Global Coffee and Tea, 206-447-1575.

Nestle, Deborah McRonald, Assistant VP and Head of Licensing, 973-593-7500

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