Nestle to pay .15 bln for global coffee pact with Starbucks

Updated 2018-05-08 13:46:06 Xinhua

Switzerland-based food giant Nestle said Monday it was set to pay Starbucks 7.15 billion U.S. dollars for the right to sell the American chain's products outside its worldwide coffee shops.

Under the alliance deal announced on Monday, Seattle-based Starbucks and Nestle have agreed to work together on marketing strategies and innovation.

"This transaction is a significant step for our coffee business, Nestle's largest high-growth category," Nestle chief executive officer (CEO) Mark Schneider said in a statement.

"With Starbucks, Nescafe and Nespresso, we bring together three iconic brands in the world of coffee."

As part of this transaction, Starbucks will receive an up-front cash payment of 7.15 billion U.S. dollars.

The transaction does not include the transfer of any fixed assets, which facilitates a smooth and efficient integration, said the Swiss-based company.

Nestle said it expected this business to contribute positively to its earnings per share and organic growth targets as from 2019.

Nestle's ongoing share-buyback program will remain unchanged.

Some 500 Starbucks employees will join Nestle to drive performance of the existing business and global expansion.

"This global coffee alliance will bring the Starbucks experience to the homes of millions more around the world through the reach and reputation of Nestle," Kevin Johnson, president and CEO of Starbucks was quoted as saying in the Nestle statement.

"This historic deal is part of our ongoing efforts to focus and evolve our business to meet the changing consumer needs," he said.

Also in the News

Nicole Kidman Recalls Oscar Glory: Loneliest Time
Showbiz2016/06/16 13:58May 26 2018 14:16:09

Nicole Kidman Recalls Oscar Glory: Loneliest Time

Attending Shanghai International Film Festival, Nicole Kidman talks about her role in "Grace of Monaco".

Labor Day Travel Peak Starts
Also in the News2014/05/01 12:16May 26 2018 14:16:09

Labor Day Travel Peak Starts

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'
Also in the News2014/04/18 13:18May 26 2018 14:16:09

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'

Hollywood star Johnny Depp's speech in the upcoming new film "Transcendence" has been disclosed on Friday, April 11th.

Most Watched

News:
China World Business Sports Showbiz Audio
Video:
C4 My Chinese Life The Sound Stage China Revealed Showbiz Video Travel Video
Photos:
China World Fun Travel Entertainment Sports
Travel:
Beijing Shanghai Guangzhou
Lifestyle:
Live Music Opera & Classical Movies Traditional Shows Exhibitions
Learn Chinese:
Chinese Studio Living Chinese Everyday Chinese Just For Fun Chinese Culture Buzzwords