Nestlè and Starbucks, a new global revolution?

Nestlé and Starbucks announced that Nestlé will pay Starbucks $7.15 billion for the right to market, sell and distribute Starbucks coffee globally outside Starbucks stores.

Nestlé’s stronger distribution network will be used to expand Starbucks’ distribution, especially into Nestlé’s proprietary single-serve system (Nespresso and Nescafé Dolce Gusto). A big vantage for Starbucks that will be able to use Nestlé’s distribution power in China.

On the other hand, Nestlè’s $7 billion licensing deal for Starbucks’ retail business will help Nestlè in its battle against JAB, above all in the US market.

News also from Italy where it seems Starbucks is ready to open its first Italian store in Piazza Cordusio, in the heart of Milan, in September. A new challenge in a so competitive market like Italy where Fipe, the Italian catering industry representative, declared that 149K bars serve 6bn espressos annually.