Swiss company Nestle has tied up with the company to sell Starbucks’ home-house $ 710 million (that is, 46 thousand crores).
Nestle now has a coffee brand like Nescafe and Nespresso. Nestle hopes that after the deal, she will be able to sell coffee worth 200 million dollars annually.
That is, now Starbucks coffee will now be available at Nestle stores.
Nestle Chief Executive Officer Mark Schneider said that coffee business is very important for the company. With this agreement, Nestle will find a strong platform to increase its business in North America.
Schneider became Nestle’s Chief Executive two years ago and was the first person in Nestle’s 100-year history to reach this position directly from outside the company.
The company said that under the agreement, nearly 500 employees of Starbucks will be involved in Nestle. However, regulatory clearances are yet to be received for this deal and it is expected to be completed by the end of 2018.
Last year, Nestle bought 68 percent of the piece in California’s Blue Bottle Coffee for $ 42.4 million. Blue Bottle sells coffee online to customers and has a big market in USA and Japan.
Nestle recently sold its chocolate business to the Ferrero Group in the United States.