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Press Release: Nestle: Nestlé enters agreement for the perpetual global license of Starbucks consumer and foodservice products

7 May 2018 5:02 am
   Nestlé S.A. / Nestlé enters agreement for the perpetual global 
license of Starbucks consumer and foodservice products . Processed and 
transmitted by Nasdaq Corporate Solutions. The issuer is solely 
responsible for the content of this announcement. 
   This press release is also available in Français (pdf): 
and Deutsch (pdf): 
   Follow today's event live 
   19:30 CEST Investor call audio webcast 
   Full details in Events 
   Vevey, May 7, 2018 
   Nestlé enters agreement for the perpetual global license of 
Starbucks consumer and foodservice products 
   Nestlé and Starbucks bring together the world's most iconic coffee 
   Nestlé today announced an agreement granting the company perpetual 
rights to market Starbucks consumer and foodservice products globally, 
outside of the company's coffee shops. This transaction provides 
Nestlé with a strong platform for continued growth in North America 
with leadership positions in the premium roast and ground and portioned 
coffee businesses. It also allows Nestlé to capture exciting new 
growth opportunities in the rest of the world with Starbucks premium 
products. As a complete provider of coffee solutions, Nestlé will 
accelerate growth in out-of-home channels. The two companies will work 
closely together on innovation and go-to-market strategies to bring the 
best coffee to customers around the world. 
   "This global coffee alliance will bring the Starbucks experience to the 
homes of millions more around the world through the reach and reputation 
of Nestlé," said Kevin Johnson, president and ceo, Starbucks. "This 
historic deal is part of our ongoing efforts to focus and evolve our 
business to meet the changing consumer needs, and we are proud to work 
alongside a company that is committed to our shared values." 
   "This transaction is a significant step for our coffee business, 
Nestlé's largest high-growth category," said Mark Schneider, CEO, 
Nestlé. "With Starbucks, Nescafé and Nespresso we bring 
together three iconic brands in the world of coffee. We are delighted to 
have Starbucks as our partner. Both companies have true passion for 
outstanding coffee and are proud to be recognized as global leaders for 
their responsible and sustainable coffee sourcing. This is a great day 
for coffee lovers around the world." 
   As part of this transaction, Starbucks will receive an up-front cash 
payment of USD 7.15 billion for a business which generated annual sales 
of USD 2 billion. The transaction does not include the transfer of any 
fixed assets, which facilitates a smooth and efficient integration. 
Nestlé expects this business to contribute positively to its 
earnings per share and organic growth targets as from 2019. 
Nestlé's ongoing share-buyback program will remain unchanged. 
   Approximately 500 Starbucks employees will join the Nestlé family 
to drive performance of the existing business and global expansion. 
Operations will continue to be located in Seattle. 
   The agreement is subject to customary regulatory approval and is 
expected to close by the end of 2018. The agreement excludes 
Ready-to-Drink products and all sales of any products within Starbucks 
coffee shops. 
   Nestlé will host an investor conference call led by CEO Mark 
Schneider and CFO François-Xavier Roger on Monday, 7 May at 7:30 
p.m. CEST (1:30 p.m. EST) to provide further details. 
   Investors: Luca Borlini Tel.: +41 21 924 3509 
   Media Europe: Christoph Meier Tel.: +41 21 924 2200 
   Media US: Josh Morton Tel.: +1 571 457 5262 
   This announcement is distributed by Nasdaq Corporate Solutions on behalf 
of Nasdaq Corporate Solutions clients. 
   The issuer of this announcement warrants that they are solely 
responsible for the content, accuracy and originality of the information 
contained therein. 
   Source: Nestlé S.A. via Globenewswire 
   --- End of Message --- 
   Nestlé S.A. 
   Avenue Nestlé 55 Vevey Switzerland 
   WKN: 887208;ISIN: CH0038863350; 

(END) Dow Jones Newswires

May 07, 2018 01:02 ET (05:02 GMT)
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