The Global Coffee Alliance partners are seeking to broaden Starbucks' brand reach in Australia with a new ready-to-drink coffee range
The Starbucks Frappuccino iced coffee range | Photo credit: Nestlé
Nestlé has begun marketing and distributing Starbucks ready-to-drink (RTD) iced coffee in Australia as part of the Global Coffee Alliance partnership.
Supported by a media and influencer campaign, the Starbucks Frappuccino iced coffee range will be launched in Woolworths, IGA, 7/11, BP and EG Group-operated supermarket and convenience stores across Australia.
Nestlé said RTD is a fast-growing category in Australia and Starbucks is set to develop a ‘strong innovation pipeline’ to enhance its presence in the segment.
The companies plan to increase awareness of Starbucks’ on-the-go beverages, targeting younger consumers with the increasingly popular format.
The launch marks the latest new market for the Global Coffee Alliance, a $7.1bn partnership between Nestlé and Starbucks which launched in May 2018.
The agreement grants Nestlé exclusive license to distribute Starbucks-branded coffee products across more than 80 markets outside of Starbucks’ retail stores.
This is the first time that the Swiss company will leverage its local distribution network in Australia to bring consumers Starbucks retail coffee in a convenient on-the-go format.
“Through this new collaboration, Nestlé and Starbucks are bringing Australians the signature taste of Starbucks coffee in an easy, ready-to-drink format. These new products will enable us to grow our younger consumer segment, with a tailored and new beverage offering. We are confident Australian coffee lovers will love these products in the summer months when a cold beverage is perfect for on-the-go,” said Rebecca Dobbins, General Manager of Dairy, Nestlé.
Starbucks opened its first store in Australia in Sydney in July 2000. The US coffee chain expanded to nearly 90 stores in 2008, but closed more than 70% of its underperforming locations that year after accumulating losses of $105m in the country.
Critics suggested that Starbucks’ outlet expansion in Australia’s sophisticated coffee shop market was too fast and failed to account for local tastes and demand.
However, Starbucks has since reached 60 stores across the country, with outlets targeting the tourist-centric regions of New South Wales, Victoria and the Gold Coast – indicating a more tailored growth plan.