Nestlé launches new range of products post-Starbucks deal

Nestlé has launched a new range of coffee products under the Starbucks brand, after the former sealed a licensing deal with the coffee giant in August last year. The new range consists of whole bean and roast coffee grounds, as well as Starbucks capsules developed using Nespresso and Nescafé Dolce Gusto proprietary coffee and system technologies.

Nestlé will roll out these products in several markets across Asia, Europe, Latin America, Middle East and the US in grocery stores and major online platforms. The licensing deal gives Nestlé the perpetual rights to market Starbucks consumer packaged goods and food service products around the world, outside of Starbucks coffee houses and excluding ready-to-drink products.

As part of the licensing deal, Nestlé said in an earlier statement that it will be bringing 500 Starbucks staff over to its company, mostly based in Seattle and London as part of the deal.

Patrice Bula, executive vice president, head of strategic business units, marketing, sales and president of Nespresso said that both companies have developed a range of new premium coffees, combining Nestlé’s coffee and system with the Starbucks coffee, roasting and blending expertise. "With Nescafé, Nespresso and Starbucks, Nestlé now has the best coffee portfolio to delight consumers around the world," he added.

John Culver, group president, Starbucks International, channel development and global coffee and tea said that the new Starbucks and Nestlé products further extends the global reach of the Starbucks brand as it expands into new channels.

“We are very pleased to be able to provide our premium high-quality Starbucks coffees to customers at home across the world’s most popular single-serve platforms, the Nespresso and Nescafé Dolce Gusto systems,” he added.

Nestlé currently works with Zenith as its media agency in Singapore, while Publicis One won the business in Malaysia. This came after Nestlé called for a media review in efforts to align its strategy, planning and buying with the evolving industry landscape.

The review was first called in June last year, in a bid to reexamine ways to manage media requirements such as strategy, planning and buying. Mindshare, the incumbent for both Malaysia and Singapore, was invited to pitch. Mindshare had held the business for around two decades prior to the review.

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