Nestle to Pay $7.15 billion For the Rights to Market Starbucks Products Around the World
Nestle to Pay $7.15 billion For the Rights to Market Starbucks Products. (Photo Credits: Wikimedia Commons)

Nestle announced today that it will pay $7.15 billion for the rights to market Starbucks products around the world, outside of the company’s coffee shops. According to an AFP report, the agreement will give Nestle, a strong platform for continued growth in North America. The deal however, does not include any of Starbucks’ coffee shops and cafes. The transaction required approval from regulators, which is expected to be finalised by the end of 2018.

Nestle already has a sizable presence in the coffee business with established brands like Nescafe and Nespresso. It's now adding Starbucks coffee and tea products to the list. Nestle CEO Mark Schneider in a statement issued by the company said, "This transaction is a significant step for our coffee business. Both companies have true passion for outstanding coffee and are proud to be recognized as global leaders for their responsible and sustainable coffee sourcing.”

According to the statement released by the company, around 500 Starbucks staff will join Nestle. The agreement only covers Starbucks' packaged goods sold outside the US company's stores. It doesn't include Starbucks' ready-to-drink coffee, tea or juices.