Starbucks and Nestlé: A Bold Blend

Surprisingly, Starbucks and Nestle have been struggling to grow. In response to this, Nestle paid Starbucks $7 billion to start marketing and selling their packaged coffee beans, and single serve packs through retail and grocery stores around the world. As this offer was extremely valuable, Starbucks did not turn it down. Besides the enormous up-front payment, this “partnership” will propel Starbucks into more international locations, as Nestle operates in more countries than Starbucks does. For Nestle, they will use Starbucks to increase their market share in the American coffee market, and increase sales.

In regards to marketing, this is an outstanding decision for both companies. Both are quite well known, and through this partnership they will become even bigger than they were before. Starbucks, with its name brand recognition and modern day popularity will most definitely provide a boost to Nestle. On the other hand, Nestle will provide Starbucks with a platform to expand and reach more consumers and therefore increase their brand recognition. All in all, the partnership between Starbucks and Nestle will be mutually beneficial for both companies and it will be very interesting to see what comes of this partnership.

https://www.wsj.com/articles/starbucks-and-nestle-a-bold-blend-1525709231

Andrew Dibello