Starbucks and Nestlé have announced a new collaboration that will bring Ready-To-Drink (RTD) coffee beverages to select markets across Southeast Asia, Oceania and Latin America by 2022.
The partnership will initially focus on introducing Starbuck’s most popular RTD products such as the Frappuccino and Doubleshot. From there, the companies will work together to develop a “strong innovation pipeline”, eventually rolling products out across a variety of platforms.
According to Starbucks, its RTD coffee beverages are made with 100 per cent Arabica beans sourced from some of the world’s premier coffee growing regions.
“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,” says Michael Conway, Group President of 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.”
This collaboration builds on from a successful global coffee alliance partnership that was started in 2018. Under this alliance, Nestlé and Starbucks quickly brought a range of premium products to the global market including whole, roast, and ground beans as well as Starbucks capsules for Nespresso and Nescafé Dolce Gusto.
This partnership expanded Starbucks reach to 79 markets outside of Starbucks retail stores. Starbuck’s 2020 product sales reached US$2.9 billion, reflecting a double-digit organic growth as compared to 2019.
“Our partnership with Starbucks has confirmed Nestlé’s leading position in the global coffee business,” says David Rennie, Head of Nestlé Coffee Brands.
Nestlé and Starbucks will continue to work closely together to develop innovative products and go-to-market strategies that the company hopes will amplify the reach and unique experience of the Starbucks brand.
“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,” says Rennie.
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