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Nestle to pay Starbucks $7.15 billion in global coffee alliance

'We do not want the consumer to perceive that Starbucks is now part of a bigger family,' a Nestle source said

Reuters  |  LONDON/ZURICH 

Swiss-based food giant Nestle will pay Starbucks $7.15 billion in cash for the rights to sell the US coffee chain's products around the world, tying a premium brand to Nestle's global distribution muscle. The deal on Monday for a business with $2 billion in sales reinforces Nestle's position as the world's biggest coffee company tries to fortify its place atop a fast-changing market. It is a bold stroke by new Nestle Chief Executive Mark Schneider, who has made coffee a strategic priority as he tries to convince uneasy shareholders, including activist Third Point, ...

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First Published: Tue, May 08 2018. 00:02 IST