Nestlé and Starbucks Licensing Deal - A New Brew in the Global Coffee Market
Case Code: BSTR570
Case Length: 12 Pages
Pub Date: 2019
Teaching Note: Available
Organization: Nestlé S.A.
Countries: United States
Themes: Strategic Alliances, Business Level Strategy
Abstract Case Intro 1 Case Intro 2 Excerpts
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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