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
Workplace Switzerland
Trump tariff shock: how Switzerland is positioning itself
Is your place of origin, your Heimatort, important to you?
Every Swiss citizen has a Heimatort, a place of origin, but many have never visited theirs. What’s your relationship with your Heimatort? What does it mean to you?
This content was published on
Around 50 caravans belonging to members of a travelling community attempting to enter canton Valais in southern Switzerland without prior warning were blocked by police.
Swiss consumer spending rises in March despite tariff uncertainties
This content was published on
Global financial turmoil and uncertainties surrounding trade tariffs have not yet had an impact on consumer behaviour in Switzerland, where spending rose strongly in March.
Swiss road safety group warns of e-scooter dangers
This content was published on
Accidents involving electric scooters often result in injuries to the head, face or upper body, the Swiss Council for Accident Prevention BFU warns.
This content was published on
The number of eggs consumed in Switzerland last year smashed the annual record, according to the Federal Office for Agriculture (FOAG).
This content was published on
Switzerland emitted 40.8 million tonnes of CO2 equivalents in 2023, 1 million tonnes less than the previous year. Overall, emissions were 26% lower than in 1990.
Swiss soldiers take part in military exercise in Austria
This content was published on
The Swiss army has organised a military exercise in Austria, involving 1,000 militia soldiers. The aim is to strengthen the country's defence capability.
Switzerland records below-average number of avalanche deaths
This content was published on
Ten people died in avalanches in the Swiss Alps last winter, according to the WSL Institute for Snow and Avalanche Research (SLF). This is below the average for the past 20 years.
This content was published on
The Swiss population is expected to grow to 10.5 million by 2055, mainly due to immigration, according to the latest forecast by the Federal Statistical Office (FSO).
WMO climate report: warmest year and record rainfall in Europe in 2024
This content was published on
Europe faced a stark east-west climate divide last year: it was too wet in the west and too dry in the east, according to a new report.
Trump tariffs: 95% of Swiss SMEs don’t plan to move to US
This content was published on
According to a survey, 95% of small and medium-sized industrial companies (SMEs) in Switzerland are not planning to relocate to the United States in the near future.
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.