A Starbucks coffee shop in Lucerne, Switzerland
Keystone
The Swiss food giant Nestlé is set to pay Starbucks $7.1 billion (CHF7.1 billion) to market the American firm’s products outside Starbucks’ coffee shops.
This content was published on
1 minute
SDA-ATS/sb
Under the alliance deal, announced on Monday, Starbucks and Nestlé have agreed to work together on marketing strategies and innovation.
“This transaction is a significant step for our coffee business, Nestlé’s largest high-growth category,” Nestlé chief executive officer (CEO) Mark Schneider said in a statement on MondayExternal link.
“With Starbucks, Nescafé and Nespresso we bring together three iconic brands in the world of coffee.”
Nestlé says the deal should provide it with a platform for “continued growth in North America with leadership positions in the premium roast and ground and portioned coffee businesses”.
Starbucks’ out-of-shop sales generate $2 billion in annual revenues. Coffee and creamers generate CHF17 billion revenues for Nestlé, roughly a fifth of its turnover.
Starbucks plans to use the money from the new deal to accelerate share buybacks and now expects to return approximately $20 billion in cash to shareholders in the form of share buybacks and dividends through fiscal year 2020, it said in a statementExternal link.
Popular Stories
More
Life & Aging
Switzerland no longer wants to foot the bill for ‘suicide tourism’
As a Swiss Abroad, how do you feel about the emergence of more conservative family policies in some US states?
In recent years several US states have adopted more conservative policies on family issues, abortion and education. As a Swiss citizen living there, how do you view this development?
UN and Switzerland against forced displacement of Palestinians
This content was published on
The UN and the Swiss government are opposed to any forced displacement of Palestinians, as proposed by US President Donald Trump.
Swiss diocese introduces code of conduct to tackle church abuse
This content was published on
The Diocese of Sion has introduced a code of conduct to tackle all forms of church-related abuse. A prevention commission has also been established.
Nestlé bows to investor and sector pressures with strategic shift
This content was published on
Nestlé has for the first time set a target for increasing profit margins, marking a significant shift from its traditional sales-focused model.
Swiss scientists use coffee for a new kind of energy boost
This content was published on
Researchers have found a way to produce high-quality methane gas from the coffee grounds left behind after instant coffee production.
This content was published on
A booklet by the Swiss Heritage Society, Die schönsten Cafés und Tea Rooms in der Schweiz (Switzerland’s most beautiful cafés), presents a selection of 74 sites from across the country. It includes traditional cafés, stylish espresso bars, wood-panelled interiors in the rural Lower Engadine valley and light-flooded new sweet shops in Geneva, as well as…
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.