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Tuesday, May 8, 2018

Nestle dangles $7.1b for Starbucks coffee

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 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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