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Nestlé Pays $7.2B to Sell Starbucks Coffee

Both companies stand to benefit from the alliance



Consumer products company Nestlé S.A. (Vevey, Switzerland) has reached a deal with Starbucks Coffee Co. (Seattle) for $7.15 billion cash to begin selling the brand’s packaged coffees and teas worldwide.

The deal offers benefits to both companies: Starbucks coffees and teas serve as premium products that Nestlé can distribute on a vast worldwide scale. Starbucks stands to boost its packaged goods business by $2 billion through international retail sales, and Nestlé expects the deal to add to its earnings by 2019.

According to Reuters, Starbucks will use the proceeds to increase planned stock buybacks to $20 billion from $15 billion by 2020, with added earnings per share by 2021. The coffee company will also receive revenue from product sales and royalties.



MasterClass: ‘Re-Sparkling’ Retail: Using Store Design to Build Trust, Faith and Brand Loyalty

HOW CAN WE EMPOWER and inspire senior leaders to see design as an investment for future retail growth? This session, led by retail design expert Ian Johnston from Quinine Design, explores how physical stores remain unmatched in the ability to build trust, faith, and loyalty with your customers, ultimately driving shareholder value.

Presented by:
Ian Johnston
Founder and Creative Director, Quinine Design

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