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Starbucks and Nestlé to Bring Ready-to-Drink Coffee Beverages to Southeast Asia, Oceania and Latin America

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Starbucks (NASDAQ: SBUX) and Nestlé announced a collaboration to launch Starbucks Ready-to-Drink (RTD) coffee in select markets across Southeast Asia, Oceania, and Latin America starting in 2022. This partnership aims to enhance the global reach of Starbucks through tailored coffee products. The duo has previously achieved CHF 2.7 billion in sales of Starbucks products, marking double-digit organic growth in 2020. Focus will be on popular RTD items like Frappuccino and Doubleshot, as well as an innovation pipeline to attract younger consumers.

Positive
  • Collaboration with Nestlé to expand RTD coffee reach in new markets.
  • Previous successful partnership leading to CHF 2.7 billion in sales for Starbucks products in 2020.
  • Focus on popular products like Frappuccino and Doubleshot to attract younger consumers.
Negative
  • None.

Starbucks Corporation (NASDAQ: SBUX) and Nestlé 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.

“We continue to strengthen our partnerships to extend the reach of the Starbucks brand globally. With its historical local footprint and exceptional execution capabilities, Nestlé is an ideal partner to help us develop and offer tailored Starbucks coffee beverages in these regions,” 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.”

“Our partnership with Starbucks has confirmed Nestlé’s leading position in the global coffee business,” said David Rennie, Head of Nestlé 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, Nestlé 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.”

Nestlé 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 growing 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, Nestlé 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 Nescafé Dolce Gusto proprietary technologies. 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 globally.

About Starbucks

Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting high-quality arabica coffee. Today, with nearly 33,000 stores worldwide, the company is the premier roaster and retailer of specialty coffee in the world. Through our unwavering commitment to excellence and our guiding principles, we bring the unique Starbucks Experience to life for every customer through every cup. To share in the experience, please visit us in our stores or online at http://news.starbucks.com or www.starbucks.com.

About Nestlé

Nestlé is the world’s largest food and beverage company. It is present in 186 countries around the world, and its 273,000 employees are committed to Nestlé’s purpose of unlocking the power of food to enhance quality of life for everyone, today and for generations to come. Nestlé offers a wide portfolio of products and services for people and their pets throughout their lives. Its more than 2,000 brands range from global icons like Nescafé or Nespresso to local favorites like Ninho*. Company performance is driven by its Nutrition, Health and Wellness strategy. Nestlé is based in the Swiss town of Vevey where it was founded more than 150 years ago.

Forward-Looking Statements

Certain statements contained in this press release are “forward-looking” statements within the meaning of the applicable securities laws and regulations. Generally, these statements can be identified by the use of words such as “believe,” “continue,” “could,” “expect,” “may,” “predict,” “remain,” “should,” “will,” “would,” and similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These statements include statements relating to the expected timing and nature of future product offerings and the potential growth of the RTD business. These forward-looking statements do not represent historical data, are based on currently available operating, financial and competitive information and are subject to a number of significant risks and uncertainties. Actual future results and trends may differ materially depending on a variety of factors, including the risks detailed in the company filings with the Securities and Exchange Commission, including the “Risk Factors” sections of Starbucks Annual Report on Form 10-K for the fiscal year ended September 27, 2020. The company assumes no obligation to update any of these forward-looking statements.

FAQ

What is the new collaboration between Starbucks and Nestlé about?

Starbucks and Nestlé are collaborating to bring Starbucks Ready-to-Drink (RTD) coffee beverages to markets in Southeast Asia, Oceania, and Latin America.

When will the Starbucks RTD coffee products be launched?

The Starbucks RTD coffee products are set to launch in select markets starting in 2022.

What are the expected benefits of the Starbucks and Nestlé partnership?

The partnership aims to leverage Nestlé's distribution capabilities to enhance the Starbucks brand and attract younger consumers with tailored coffee products.

What sales growth did Starbucks achieve in 2020?

Starbucks products achieved CHF 2.7 billion in sales in 2020, showing double-digit organic growth compared to 2019.

Which Starbucks products will be initially focused on in the new collaboration?

The collaboration will initially focus on popular RTD products like Starbucks® Frappuccino® and Starbucks Doubleshot®.

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