Swiss firm announces £5.2 billion coffee deal

Nestle has announced that it will pay Starbucks £5.2 billion to sell the company’s coffee products.

The Swiss giant, which boasts Nescafe and Nespresso among its brands, will have the right to market Starbucks’ coffee in retail outlets outside the cafe chain.

The deal means Nespresso machine owners will be able to buy Starbucks coffee branded pods for use at home.

Consumers will also find Starbucks coffee beans, ground and instant coffee more readily available as Nestle, the world’s largest food and drinks company, uses its vast distribution network to market Starbucks products worldwide. Nestle’s name will not appear alongside Starbucks’s, but the deal could still help Nestle strengthen its US business, thanks to the powerful High Street coffee brand.

Nestle said 500 Starbucks employees will transfer over to its business but they will continue to be located in Seattle, which has been the group’s headquarters for the last 47 years.