20.Nov .2019 17:40

Nestle Sees $250 Million Boost for Starbucks Products

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Nestle SA expects to get about a quarter of a billion dollars in extra revenue from Starbucks-branded products this year after it began selling items including Nespresso-compatible capsules under a partnership with the U.S. coffee giant.

Starbucks-branded merchandise will add about 250 million Swiss francs ($252 million) to sales this year. Last year, Nestle paid more than $7 billion for licenses to use the Starbucks brand for products. The alliance could help Nespresso return to annual revenue growth exceeding 10%.

Nestle plans to add 10 more markets next year for the products, including Argentina, Colombia and Panama, which would bring the total to 50. The company will introduce Starbucks-branded soluble coffee next year and expand sales of the broader range to offices and hotels.