Nestlé announces deal to market Starbucks products globally

Nestlé SA said Monday it has entered a deal to market coffee chain Starbucks Corp.’s consumer and foodservice products.

The deal gives the Swiss food and drink group NSRGY, +0.33%NESN, +0.74% “perpetual rights” to market Starbucks SBUX, +2.76% products globally outside of its coffee shops, and will pay it $7.15 billion up front as part of the agreement. The companies will also work together on strategies to market those products, but doesn’t include the sales of products sold in Starbucks coffee shops.

“This global coffee alliance will bring the Starbucks experience to the homes of millions more around the world through the reach and reputation of Nestlé,” said Kevin Johnson, president and chief executive officer of Starbucks.

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