Nestle is paying $7.2 billion to sell Starbucks coffee

Under the deal, Nestle (NSRGF) will pay $7.2 billion to market, sell and distribute Starbucks'(SBUX) packaged products around the world, the companies said Monday.

Nestle already has a significant presence in the coffee business with well-known brands like Nescafe and Nespresso. It's now adding Starbucks coffee and tea products to the list.

The agreement only covers Starbucks' packaged goods sold outside the US company's stores. It doesn't include Starbucks' ready-to-drink coffee, tea or juices.

Starbucks CEO Kevin Johnson said the deal "will bring the Starbucks experience to the homes of millions more around the world."

The deal still needs approval from regulators and is expected to be finalized in summer or early fall this year, the companies said.

About 500 Starbucks employees will join Nestle under the agreement, the Switzerland-based company said.

It said the Starbucks packaged goods business generates annual revenue of about $2 billion a year.

Click here to read more.

#IndustryNews

Featured Posts
Recent Posts
Archive
Search By Tags
No tags yet.

Tami L Barber

NMLS #1030737

(423) 943-9269

Encore Lending Group LLC

NMLS #1249911

206 Wesley St, Johnson City TN 37601

  • w-facebook
  • LinkedIn - White Circle
  • Instagram - White Circle

The information contained in this site has been prepared by an independent third party and is distributed for educational purposes only. This is designed to give helpful tips on the mortgage process and is not intended to give legal advice. Information is considered reliable but not guaranteed. This is not a prequalification, preapproval, loan approval or commitment to lend.