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Nestlé bolsters business with acquisition of Seattle’s Best Coffee

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Nestlé bolsters business with acquisition of Seattle’s Best Coffee

October 24, 2022 by Asia Food Journal

Seattle's Best Coffee

Courtesy of Nestle

Acquisition of Seattle’s Best Coffee further strengthens Global Coffee Alliance with Starbucks

Starbucks and Nestlé announced today that Nestlé plans to acquire Seattle’s Best Coffee brand from Starbucks. This transaction is part of Nestlé’s focus on driving sustained profitable growth in the coffee category. It strengthens the Global Coffee Alliance by allowing both companies to focus on their core strengths.

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Seattle’s Best Coffee’s approachable line of whole bean, roast, and ground packaged coffee, and K-Cup pods are available in a variety of roasts and flavor profiles across both foodservice and grocery channels. In addition to Starbucks packaged coffees distributed by Nestlé under the Global Coffee Alliance, Seattle’s Best Coffee joins Nestlé’s roster of beloved coffee brands in the U.S., including Nescafé, Nespresso, and Blue Bottle. The addition adds depth to Nestlé’s North America coffee portfolio by further expanding the company’s position in the category.

“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,” said Michael Conway, group president, Starbucks International, and Channel Development. “We’re confident that Nestlé will continue to grow Seattle’s Best Coffee brand as we focus on our strategy to elevate the premium coffee experience for consumers through the Starbucks brand.”

“Our partnership with Starbucks has confirmed Nestlé’s leading position in the dynamic and growing global coffee market,” said David Rennie, Head of Nestlé Coffee Brands. “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.”

Since forming the Global Coffee Alliance in 2018, Nestlé and Starbucks have brought a wide range of premium coffee products to new markets at a fast pace – including whole bean coffee, roast, and ground coffee, as well as Starbucks capsules for Nespresso and Nescafé Dolce Gusto proprietary systems. Today, Nestlé distributes Starbucks consumer products and foodservice beverages across more than 80 markets outside Starbucks retail stores under the Global Coffee Alliance. The total global sales of Starbucks products distributed by Nestlé in 2021 reached CHF 3.1 billion.

Through the Global Coffee Alliance, Nestlé 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 locally and globally.

We expect to close this transaction by the end of 2022, subject to respective Board and customary regulatory approvals. Both companies have agreed to keep the terms of this transaction confidential.

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Other Topics: acquisitions, coffee, Global Coffee Alliance, Industry, Seattle's Best Coffee

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