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Nestle set to sell first Starbucks coffee under $7.15 billion deal

Reuters  |  VEVEY, Switzerland 

VEVEY, (Reuters) - will sell Starbucks-branded at grocery stores and online in Europe, and from this month as it seeks to increase its lead over rivals such as JAB.

After last year's $7.15 billion cash deal for exclusive rights to sell the U.S. chain's coffees and teas, will start selling labelled beans, roast and ground and single-serve capsules for its and Nescafe Dolce Gusto

These will be available at grocery stores and online in Belgium, Brazil, Chile, China, Mexico, the Netherlands, South Korea, and Britain, with more markets following later this year, the world's biggest group said on Wednesday.

Asked whether the launch of capsules would help return to double-digit growth, Patrice Bula, executive vice president and head of strategic business units, marketing, sales and Nespresso, told a media briefing: "Yes, I hope so, yes. We have huge ambitions."

Starbucks, the world's biggest coffee chain, has been selling its coffee for use at home -- including a variety of roasts in whole beans, instant or ground versions as well as coffee pods for its Verismo brewers and JAB's K-Cup system -- across for years.

is building on this existing product range and taking it to new markets under the deal struck last May which allows to focus on its cafes and Nestle, with its retail expertise, to bring to supermarket shelves around the world.

Under last year's deal Starbucks, which is expanding in and finally ventured into coffee-obsessed in September, will have its out-of-home business managed by Nestle, while continuing to sell its directly.

Nestle is due to publish full-year results on Thursday.

(Reporting by Silke Koltrowitz; Editing by Alexander Smith)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, February 13 2019. 21:06 IST