Nestle S A : and Starbucks to bring Ready-to-Drink coffee beverages to Southeast Asia, Oceania and Latin America
July 27, 2021 at 10:10 am EDT
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Switzerland - Nestle and Starbucks Corporation today announced a new collaboration to bring Starbucks Ready-to-Drink (RTD) coffee beverages to select markets across Southeast Asia, Oceania and Latin America.
The companies will work to quickly bring these coffee beverages to consumers as of 2022.
'Our partnership with Starbucks has confirmed Nestle's leading position in the global coffee business,' said David Rennie, Head of Nestle Coffee Brands. The 2020 sales of Starbucks products reached CHF 2.7 billion, a double-digit organic growth compared to 2019. 'With our expansion plans into RTD coffee, Nestle will continue to build on its global leadership in coffee and will benefit from new growth opportunities in a segment that is developing rapidly and attracting new and younger consumers.'
'We continue to strengthen our partnerships to extend the reach of the Starbucks brand globally. With its historical local footprint and exceptional execution capabilities, Nestle is an ideal partner to help us develop and offer tailored Starbucks coffee beverages in these markets,' said Michael Conway, group president International and Channel Development, Starbucks. 'Our partnership has proven highly successful for both companies, and we are confident that this new collaboration will help us meet our customers' evolving needs.'
Nestle and Starbucks will initially focus on the most popular RTD products, such as Starbucks Frappuccino and Starbucks Doubleshot, and will continue to develop a strong innovation pipeline. The products will be rolled out across a variety of channels, including online platforms. Starbucks RTD coffee products are made with 100% of the finest arabica beans sourced from the world's premier coffee regions.
The new collaboration builds on a successful three-year partnership through the global coffee alliance, which expanded the reach of Starbucks branded coffee and tea products across 79 markets outside Starbucks retail stores.
Since forming the global coffee alliance in 2018, Nestle and Starbucks have brought to market a wide range of premium products at a fast pace - including whole bean, roast and ground as well as Starbucks capsules for Nespresso and Nescafe Dolce Gusto proprietary technologies. Nestle and Starbucks will continue to work together closely to develop new, innovative products and go-to market strategies that will amplify the reach and expand the unique experience of the Starbucks brand globally.
Nestlé S.A. is the world's leading agri-food group. Net sales break down by category of products as follows:
- powdered and liquid beverages (26.7%): soluble coffees (Nescafé and Starbucks brands), coffee in capsules (Nespresso), chocolate drinks (Nesquik, Milo, etc.), tea drinks (Nestea), etc.;
- pet food (20.3%): brands such as Purina, Friskies, Felix, etc.;
- pharmaceutical, nutrition and well-being products (16.4%): nutritional supplements (Resource, Boost, Nutren, Optifast, Peptamen brands, etc.), infant and maternal nutrition products (NAN, illuma, Cerelac, Nido, Gerber), ketogenic beverages (BrainXpert), (Nesquick, Fitness, Cheerios, Lion, etc.), etc.;
- ready meals and seasoning products (12.5%): frozen and chilled dishes (Lean Cuisine, Hot Pockets and Stouffer's brands), soups (Maggi), etc.;
- dairy products and ice cream (11.8%): powdered milk, sweetened condensed milk, yoghurt and cream desserts, ice cream (Nido, Nesvita, Carnation, La Laitière, Coffee Mate, Nestlé Ice Cream, Dreyers, Häagen-Dazs, Extrême brands, etc.);
- chocolates, sweets and biscuits (8.7%): Kit Kat, Smarties, Cailler, Terrafertil, etc. brands;
- bottled waters (3.6%): Nestlé Pure Life, Vittel, Perrier, S. Pellegrino, etc. brands.
Net sales are distributed geographically as follows: Switzerland (1.2%), France (3.8%), the United Kingdom (3.8%), Germany (2.4%), Europe (12.8%), the United States and Canada (35%), China (5.9%), Asia and Oceania (21.4%) and Latin America (13.7%).
NESTLÉ S.A. 
