Nestlé: license deal with Starbucks on consumer products
(CercleFinance.com) - Nestlé announced earlier today that it has entered into an agreement to market Starbucks consumer and food service products outside of the chain's coffee shops.
Under the terms of the agreement, Starbucks will receive an up-front cash payment of 7.15 billion dollars for a business which generates annual sales of 2 billion dollars.
Approximately 500 Starbucks employees will join Nestlé, with operations set to continue to be located in Seattle.
The agreement—which excludes ready-to-drink products and all sales of any products within Starbucks coffee shops—is expected to close by the end of 2018.
Nestlé expects the business to contribute positively to its earnings and organic growth as from 2019.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
Under the terms of the agreement, Starbucks will receive an up-front cash payment of 7.15 billion dollars for a business which generates annual sales of 2 billion dollars.
Approximately 500 Starbucks employees will join Nestlé, with operations set to continue to be located in Seattle.
The agreement—which excludes ready-to-drink products and all sales of any products within Starbucks coffee shops—is expected to close by the end of 2018.
Nestlé expects the business to contribute positively to its earnings and organic growth as from 2019.
Copyright (c) 2018 CercleFinance.com. All rights reserved.