Nestlé and Starbucks Licensing Deal - A New Brew in the Global Coffee Market
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Case Code: BSTR570 Case Length: 12 Pages Period: 2018 Pub Date: 2019 Teaching Note: Available |
Price: Rs.300 Organization: Nestlé S.A. Industry: Beverages Countries: United States Themes: Strategic Alliances, Business Level Strategy |
Abstract Case Intro 1 Case Intro 2 Excerpts
Introduction
On August 28, 2018, Swiss transnational food and drink company Nestlé S.A. (Nestlé) and American coffee company and coffeehouse chain Starbucks Corporation (Starbucks) announced the finalization of a US $7.15billion licensing deal that allowed Nestlé the perpetual rights to market Starbucks consumer packaged goods and foodservice products globally (See Exhibit I).This association would give Nestlé the right to sell the packaged coffee products of Starbucks in supermarkets, restaurants, and other retail outlets under the Starbucks brand. Nestlé would also sell Starbucks’ ancillary brands like Seattle’s Best Coffee, Starbucks Reserve, Starbucks VIA, Teavana, and Torrefazione Italia....
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