Nestlé and Starbucks sealed a licensing agreement for the Swiss food giant to market packaged coffee and teas from the US company around the world.
Any agreement between the leading coffee companies would not include any of the 28,000 cafeterias in the Seattle-based chain, Bloomberg reported in advance.
The $ 7.15 billion deal gives Nestle perpetual rights to sell Starbucks products such as Starbucks, Seattle’s Best Coffee and TeavanaTM / MC outside of the US company’s premises and will cause some 500 Starbucks employees to switch over to Nestlé.
The deal could give Starbucks $ 3.8 billion after taxes, according to Cowen analysts, based on the firm’s operating profit excluding items paid for by Keurig Green Mountain. Analysts expect Starbucks to use this amount to repurchase shares.
