Nestle has agreed to pay over $7 billion to Starbucks in cash for the rights to sell the U.S. coffee chain’s products around the world.
$7.15 billion USD to be precise. This is the acquisition EVER just to retail a food-product. Nestle said it expects the deal to sell Starbucks bagged coffee and drinks adding to earnings by 2019. It will not involve any of Starbucks’ cafes, but does let Nestle sell Starbucks coffee in individual pods and expand sales of soluble coffee.
Overpriced Premium coffee is popular with younger customers who have grown up with Starbucks. Drinking 2 cups of coffee can be actually good for your skin… A willingness to pay up for exotic beans and specialty drinks means companies can brew up richer profit margins than in mainstream packaged food.
Dec 15, 2015 6
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