Nestle alliances with Starbucks: hope to attract more high-end consumers in the US

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 Nestle alliances with Starbucks: hope to attract more high-end consumers in the US


Nestle said in a statement 7, it will pay $7 billion 150 million in advance to Starbucks. The annual sales of the above business amounted to $2 billion. Nestle expects that the transaction will play a positive role in the companys EPS and organic growth since 2019. Nestle said its existing stock repurchase program is not affected. Starbucks said it would use the deal to speed up the repurchase of shares. Starbucks now expects investors to repay approximately $20 billion in the 2020 financial year by repurchase shares and distributing dividends. Starbucks said Nestles Nespresso and DolceGusto coffee capsules plan to use Starbucks brand. About 500 star Barker staff will join Nestle. Related business will continue to operate in Seattle, USA. Bloomberg News reported that the transaction is still subject to regulatory approval and is expected to be completed by the end of 2018. [attach importance to the American market Bloomberg analysis, Nestle and Starbucks alliance, Nestle hopes to attract more high-end coffee consumers in the U.S. market. Nestle has been overtaken by JAB holding company in the US market. Despite Starbuckss top $13 billion 800 million American coffee market, Nestles brand is leading the world market, according to European international consultancy data. Nestle increased its niche brands BlueBottleCoffee and ChameleonCold-Brew last year to expand coffee products in the US market. A few years ago, the Nespresso brand introduced a coffee machine to match the tastes of Americans in drinking large cups. Starbucks, on the other hand, is sorting out its business, hoping to focus on profitable businesses. Last November, Starbucks agreed to sell the tea brand Tazo to Unilever for 384 million US dollars.