ZURICH, SWITZERLAND– Swiss food giant Nestlé announced Monday it will pay $7.15 billion for the rights to market Starbucks products around the world, outside of the company’s coffee shops.
The agreement gives Nestlé, which owns the Nescafé and Nespresso brands, a strong platform for continued growth in North America, the company said in a statement.
“This transaction is a significant step for our coffee business, Nestle’s largest high-growth category,” said Nestlé CEO Mark Schneider in a statement.
“Both companies have true passion for outstanding coffee and are proud to be recognized as global leaders for their responsible and sustainable coffee sourcing.”
The deal does not include any of Starbucks’ coffee shops and cafés.
Around 500 Starbucks staff will join Nestlé, the company added.
The deal will create a “global coffee alliance,” Starbucks president and CEO Kevin Johnson said.
The transaction, which needs approval from regulators, should be finalized by the end of 2018.