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Starbucks and Nestlé to launch RTD coffee products in new global markets

Seattle-based Starbucks and Swiss food and beverage giant Nestlé to launch ready-to-drink (RTD) coffee products across Southeast Asia, Oceania and Latin America by 2022 as part of the global coffee alliance

Starbucks and Nestlé to launch ready-to-drink coffee products across Southeast Asia, Oceania and Latin America by 2022 | Photo credit: Starbucks

The collaboration introduces Starbucks ready-to-drink (RTD) coffee beverages, including Starbucks Frappuccino and Starbucks Doubleshot, to markets across Southeast Asia, Oceania and Latin America.  

“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,” said Michael Conway, Group President 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,” Conway added. 

The collaboration builds on the global coffee alliance partnership, which in 2018 saw Nestlé pay Starbucks $7.1bn for exclusive rights to sell the Seattle-based chains branded coffee products across retail markets globally.

Sales of retail packaged coffee have soared since the start of the pandemic, as café closures and lockdowns have driven consumers to seek premium at-home coffee experiences.

Reporting its full year results for 2020, Nestlé said there had been ‘strong consumer demand’ for its at-home coffee products globally, with its Nescafé and Starbucks ranges experiencing ‘mid-to-single digits’ sales growth, and the latter generating sales of CHF2.7bn ($3bn). 

Retail packaged coffee giants, such as Keurig Dr Pepper and JDE Peet's, all reported strong sales during 2020. In August, online specialty coffee retailer, Trade, received further backing from German conglomerate JAB Holdings to expand its US operation. 

In September 2020, German coffee roaster and café chain Tchibo entered the US retail market after joining forces with distribution company Rainmaker Food Solutions, LLC.  

In October 2020, JDE Peet’s announced it would increase coffee pod production by 60% to meet rising global demand.

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