The two companies will bring Starbucks-branded ready-to-drink coffee (RTD) beverages to select markets across Southeast Asia, Oceania and Latin America. This builds on a partnership first formed in 2018 through the global coffee alliance, which expanded the reach of Starbucks-branded coffee and tea products across 79 markets outside Starbucks retail stores.
The 2020 sales of Starbucks products reached around $2.96 billion, marking year-over-year double-digit organic growth. These new product innovations are expected to be available across a variety of channels, including online platforms, next year.
“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.”
“Our partnership with Starbucks has confirmed Nestlé’s leading position in the global coffee business,” said David Rennie, head of coffee brands at Nestle, the No. 1 consumer goods company. “With our expansion plans into RTD coffee, Nestlé will continue to build on its global leadership in coffee and will benefit from new growth opportunities in a segment that is developing rapidly and attracting new and younger consumers.”
Colgate-Palmolive’s work to evolve its innovation process is making headway, as the company looks both internally and externally to propel its digital transformation and seize opportunities beyond core adjacencies.