Nestlé and Starbucks Celebrate Five Years of their Global Coffee Alliance
September 8 - 2023
Coffee Geography Magazine
Nestlé and Starbucks are celebrating five years of their Global Coffee Alliance, established in 2018 between the two companies. The alliance combines the strength and affinity of the Starbucks brand and the company’s coffee expertise with Nestlé’s proprietary coffee platforms, manufacturing know-how and market reach. It aims to elevate and grow the Starbucks brand in consumer-packaged goods and out-of-home channels. Nestlé CEO Mark Schneider and Starbucks CEO Laxman Narasimhan met together to celebrate the milestone at an event at Nestlé’s headquarters, in Vevey, Switzerland.
Through the global coffee alliance, Nestlé and Starbucks bring to market a wide range of products, including Starbucks capsules for the Nespresso and Nescafé Dolce Gusto systems, whole bean, roast and ground and premium instant Starbucks coffees, K-Cup pods and creamers in the at-home category and in foodservice channels.
Nestlé has expanded the Starbucks on-the-go business globally and recently launched a range of ready-to-drink coffee beverages across Southeast Asia and Oceania. It has significantly strengthened its coffee business in North America. In 2022, the Starbucks business generated USD 1.6 billion in incremental sales for Nestlé.
The two companies have expanded the reach of Starbucks branded premium products to nearly 80 markets worldwide, and to-date, more than 14 billion cups are brewed at home and served through foodservice channels.
The alliance builds on the experience and capabilities of both Nestlé and Starbucks. Together, the companies have developed new, innovative products and have introduced the brand to new formats and markets, leveraging both organizations’ product knowledge and Nestlé’s distribution footprint.
“We are proud of the work we have achieved together,” said Mark Schneider, CEO, Nestlé S.A. “Nestlé and Starbucks are deeply committed to growing this business. The results show that. The outstanding collaboration between the two teams is based on common shared values and a commitment to deliver exceptional coffee that is responsibly and sustainably sourced. I look forward to taking our partnership to new heights.”
Laxman Narasimhan, ceo, Starbucks Coffee Company, said, “The formation of the Global Coffee Alliance has allowed both companies to focus on their core strengths, which has proven to be highly successful over the past five years. We are confident that there remains enormous opportunity for the Starbucks brand in this segment and only expect this business to continue to grow and reach more consumers through the alliance.”
The two companies will continue to strengthen the business and expand the Starbucks brand by seeking to create new coffee moments. They aim to capture new opportunities with cold and seasonal coffees - two categories driven mainly by young consumers. They will grow out-of-home programs and solutions, and they will continue to innovate and bring new coffee experiences to consumers.