After a $7.15 billion deal reached in May 2018 to license the Galaxy coffee chain to sell tea and coffee. Nestle will start selling grain coffee, roasted coffee and coffee tablets at its coffee maker systems.
These products will be sold in stores and online in 14 markets such as Belgium, Brazil, Chile, China, Mexico, the Netherlands, Korea, Spain and the UK, and other markets this year.
Under the deal, Champions will transfer their outside US business to Nestle for management, while continuing to directly sell beverage products.
500 Starbucks employees will move to Nestle, but that does not include a franchise to own a restaurant or coffee shop in Starbucks.
Starbucks - the world's largest coffee chain, has sold packaged coffee - including whole grain, instant coffee, ground coffee or filter bag coffee - across North America and in some international markets over the years.
The deal was signed in the context of Nestle's efforts to dominate the US luxury beverage market, where Nespresso and Nescafe have surpassed JAB Holding Co, a company of the European billionaire Reimann family, despite spending up to 30 billion USD to build a coffee empire by acquiring Keurig Green Mountain and Peet's.
Bloomberg reported that Nestle had previously struggled in the US market for many years. Under the leadership of CEO Schneider, coffee has become a top priority item in the company's development strategy, especially in the US
Since Mr. Schneider took over as CEO in 2017, Nestle has bought a majority stake in the California-based luxury brand Blue Bottle Coffee, along with the Chameleon Cold Brew brand in Texas, USA.
