Nestlé and Starbucks have entered into a new collaboration to bring Starbucks ready-to-drink (RTD) coffee beverages to selec markets across Southeast Asia, Oceania and Latin America next year. 

“Our partnership with Starbucks has confirmed Nestlé’s position in the global coffee business,” says David Rennie, head of Nestlé Coffee Brands.

“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.”

Catering to convenience
The 2020 sales of Starbucks products reached CHF 2.7 billion (US$2.9 billion), a double-digit organic growth compared to 2019.

Nestlé and Starbucks will initially focus on the most popular RTD products, such as Starbucks Frappuccino and Starbucks Doubleshot, and will continue to develop the partnership’s innovation pipeline.

The products will be rolled out across a variety of channels, including online platforms.

“We continue to strengthen our partnerships to extend the reach of the Starbucks brand globally,” says Michael Conway, group president for international and channel development, Starbucks.

“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 markets.”

Building upon global coffee alliance
The new collaboration builds on a thriving three-year partnership through the two companies’ global coffee alliance, which expanded the reach of Starbucks branded coffee and tea products across 79 markets outside Starbucks retail stores.

Since forming the global coffee alliance in 2018, Nestlé and Starbucks have brought to market a wide range of premium products – including whole bean, roast and ground as well as Starbucks capsules for Nespresso and Nescafé Dolce Gusto proprietary technologies.

Both companies will continue to work together closely to develop new products and go-to market strategies that will amplify the reach and expand the Starbucks brand globally.

Nestlé’s coffee business highlights
Nestlé’s R&D efforts recently led to the development of a generation of low carbon coffee varieties, through classical non-GMO breeding that harnesses the plant’s natural biodiversity. Compared to standard varieties, the two new Robusta varieties deliver up to 50 percent higher yields per tree.

The Swiss food giant’s Nespresso’s AAA Program promises to reinvigorate areas that have been blighted by conflicts, economic hardships or environmental disasters. By working with coffee farmers to revive the coffee sectors, “forgotten coffee” varieties can be rediscovered and used in NPD.

Since 2011, Nestlé has distributed 235 million high-performing coffee plantlets through the Nescafé Plan, and these new varieties are now included in the company’s sustainable sourcing program.

Among other coffee developments, Nestlé recently unveiled contactless coffee machines to offer an extra level of safety as virus-wary office workers return to workplaces. The units can be controlled via smartphones to allay concerns over viral transmissions.