Nestle has indicated interest in paying the
sum of $7.1billion (£5.2bn) on Starbucks for the company’s coffee
products, reports NaijaAgroNet.
The Swiss giant, which boasts Nescafe and
Nespresso to name a few of its brands, will afford the company the right to
market Starbucks’ coffee in retail outlets outside the cafe chain.
The BBC.com reports that part of the business
currently generates $2 billion in annual sales.
The deal means Nespresso machine owners will
be able to buy Starbucks coffee branded pods for use at home.
Based on the prevailing arrangement,
Consumers will also find Starbucks coffee beans, ground and instant coffee more
readily available as Nestle, the world’s largest food and drinks company, uses
its vast distribution network to market Starbucks products worldwide.
Strategically, NaijaAgroNet gathered that
Nestle’s name will not appear alongside Starbucks’s, but the deal could still
help Nestle strengthen its US business, thanks to the powerful High Street
coffee brand.
Isaac Oyimah/GEE
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