Nestlé to acquire Seattle’s Best Coffee brand from Starbucks
Nestlé has entered into an agreement with Starbucks Coffee Company to acquire the Seattle’s Best Coffee brand from the latter, in a move to strengthen its North American coffee business.
The financial terms of the deal were not disclosed.
According to Nestlé, the acquisition of Seattle’s Best Coffee brand will also further bolster the Global Coffee Alliance formed in 2018 with Starbucks to focus on their core competencies.
Nestlé and Starbucks have launched an array of coffee products such as whole bean coffee, roast, and ground coffee, along with Starbucks capsules for Nespresso and Nescafé Dolce Gusto proprietary systems following the creation of the Global Coffee Alliance.
David Rennie — Nestlé Coffee Brands Head said: “Our partnership with Starbucks has confirmed Nestlé’s leading position in the dynamic and growing global coffee market.
“With the well-known Seattle’s Best Coffee brand, we will continue to build our leadership in coffee by offering consumers more choice for their everyday coffee.”
As part of the Global Coffee Alliance, Nestlé distributes Starbucks consumer products and foodservice beverages across over 80 markets outside Starbucks retail stores.
Michael Conway — Starbucks International and Channel Development group president said: “We continue to deepen our partnership with Nestlé to deliver the best of the Starbucks Experience to our customers in channels outside of our retail stores.
“We’re confident that Nestlé will continue to grow the Seattle’s Best Coffee brand as we focus on our strategy to elevate the premium coffee experience for consumers through the Starbucks brand.”
Nestlé is said to have distributed CHF 3.1 billion worth of Starbucks products across the globe in 2021.
Expected to close by the end of this year, the transaction is subject to the board approvals of both firms and receipt of customary regulatory approvals.