Nestlé acquires Starbucks coffee business

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Nestl é, the world's largest packaged food maker, announced yesterday that it would acquire the Starbucks brand Seattle's Best Coffee, the best coffee in Seattle, as part of its focus on sustained profit growth in the coffee category and strengthening the global coffee alliance by allowing the two companies to focus on their core strengths. Market reviews say the acquisition will further strengthen Nestl é's position in the North American coffee market, the deal is expected to be completed by the end of 2022, and both companies have agreed to keep the terms of the deal secret.

Seattle's Best Coffee is a coffee retailer and wholesaler based in Seattle, Washington, USA. Starbucks was also born in Seattle. In 2003, Starbucks also used acquisitions to make it a subsidiary of its coffee chain. As an independent brand, Seattle's Best Coffee has retail and grocery stores in 20 states and the District of Columbia.

Seattle's Best Coffee sells packaged coffee beans, coffee powder and K-Cup pods capsule coffee products, mainly for catering services and grocery store channels to provide all kinds of taste products.

As early as May 2018, Nestl é bought part of Starbucks' retail business, which paid Starbucks $7.15 billion in cash. After the acquisition, Nestl é gained fuller market dominance and the right to sell Starbucks coffee bean packaging products directly to consumers in supermarkets and other food stores around the world.

In addition to the Starbucks packaged coffee that Nestl é distributes under the Global Coffee Alliance, Nestl é's list of favorite coffee brands in the United States are Nestle Coffee, Nestle Presso and Blue bottle. The addition of Seattle's Best Coffee will further expand the company's business by enriching Nestl é's North American coffee product portfolio.

"We will continue to deepen our relationship with Nestl é and provide our customers with the best Starbucks experience through channels other than retail stores." Michael Conway, president of Starbucks International and Channel Development Group, said he believes Nestl é will continue to develop the Seattle's Best Coffee brand.

Since then, Nestl é and Starbucks have continued to work closely together, and Nestl é and Starbucks have introduced a range of premium coffee products to new markets at an extremely rapid rate, including Nespresso and Dolce Gusto capsules.

Today, Nestl é distributes Starbucks consumer goods and food beverages in more than 80 markets outside Starbucks stores around the world. The total global sales of Starbucks products distributed by Nestl é reached 3.1 billion Swiss francs in 2021.

David Rennie, head of Nestle Coffee Brand, said: "the partnership between Nestl é and Starbucks confirms Nestl é's leading position in the dynamic and growing global coffee market. With the Seattles Best Coffee brand, Nestl é will continue to build our leading position in coffee by providing consumers with more daily coffee choices. "

Total sales of 69.1 billion Swiss francs (about 499 billion yuan) in the first nine months increased by 9.3%, according to Nestl é's website.

Since the beginning of this year, Nestle has continued to adjust its product portfolio and has completed a number of acquisitions. In April 2022, Nestl é Health Sciences completed a majority acquisition of Orgain, a plant-based nutrition leader.

Founded in 2009, Orgain is recognized as the fastest growing organic protein company in the United States, with more than 30, 000 distribution points and the highest rating of plant protein powder on Amazon. The deal is expected to slightly increase Nestl é's organic growth rate and slightly dilute the group's basic trading operating margin in 2022.

In September, Nestl é Health Sciences completed its acquisitions of Puravida, a Brazilian company, and The Better Health Company, a New Zealand company.

It has been learned that Seattle's Best Coffee business is limited to the United States at present. On October 9th Nestle Coffee also announced its 2030 plan to work with coffee growers to help them transition to renewable agriculture. By 2030, the brand will invest more than 1 billion Swiss francs in the Nestle Coffee program to expand its sustainable development efforts.

Photo Source: Internet

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