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.
How is your country dealing with the return of stolen artifacts?
Western nations like Switzerland often have to deal with the process of recovering or returning looted artifacts which have been illegally imported. What’s the situation like in your country?
What do you think Switzerland’s Alain Berset can bring to the Council of Europe?
The former interior minister is to become the first Swiss Secretary General of the Council of Europe – which issues should his five-year term focus on?
Sylvain Saudan, ‘skier of the impossible’, dies aged 87
This content was published on
The Swiss father of extreme skiing pioneered descents from the Alps to the Himalayas – and became the sport’s first star.
Hayek family buys additional Swatch shares for nearly CHF11 million
This content was published on
Following the acquisition of registered shares worth over CHF20.6 million on Monday, the Hayek family made another purchase on Tuesday.
Suicide capsule to be used in Switzerland this year, says euthanasia organisation
This content was published on
The organisation “The Last Resort” has confirmed that the suicide capsule Sarco is to be used in Switzerland. This should happen this year, it said.
Ukrainian children flown to Switzerland for cancer treatment
This content was published on
The Swiss air rescue service Rega flew two Ukrainian children with cancer to Switzerland from a hospital in Kyiv hit by Russian missiles.
Swiss Solidarity raises over CHF10 million for victims of extreme weather
This content was published on
The money raised will be used to help those affected by the recent storms and flooding in the cantons of Ticino, Graubünden, and Valais.
Swiss giant Roche given green light for lung cancer drug in Canada
This content was published on
According to a recent study, Roche’s Alecensaro reduced the risk of recurrence or death by 76% compared to chemotherapy alone.
Swiss luxury watch market hit hard by China-led slump
This content was published on
Sales of Swiss-made luxury watches are in sharp retreat as nervous consumers reconsider splashing out on expensive timepieces and demand slumps.
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.