Under the newly completed partenrship, Nestlé and Starbucks will work together on Starbucks’ existing range of roast and ground coffee. Credit: Starbucks Corporation.

Nestlé has completed a $7.15bn licensing deal with Starbucks granting the Swiss transnational food and drink company perpetual rights to market Starbucks’ consumer packaged goods and foodservice products worldwide.

The completion follows a previous licensing deal with Starbucks signed by Nestlé in May this year for the perpetual global license of Starbucks’ consumer and foodservice products.

Under the new partnership, the two companies will work together on Starbucks’ existing range of roast and ground coffee, in addition to instant and portioned coffee.

Nestlé CEO Mark Schneider said: “This partnership demonstrates our growth agenda in action, giving Nestlé an unparalleled position in the coffee business with a full suite of innovative brands. With Starbucks, Nescafé and Nespresso, we bring together the world’s most iconic coffee brands.

“The outstanding collaboration between the two teams resulted in a swift completion of this agreement, which will pave the way to capture further growth opportunities.”

“The outstanding collaboration between the two teams resulted in a swift completion of this agreement, which will pave the way to capture further growth opportunities.”

The agreement covers Starbucks packaged coffee and tea brands such as Seattle’s Best Coffee, Teavana, Starbucks VIA Instant, Torrefazione Italia coffee, and Starbucks-branded K-Cup pods.

The deal does not include ready-to-drink (RTD) products or sales of any products within Starbucks stores.

With the completion of the deal, around 500 Starbucks employees in the US and Europe are now part of the Nestlé family, with the majority to be based in Seattle and London.

Starbucks president and CEO Kevin Johnson said: “This global coffee alliance with Nestlé is a significant strategic milestone for the growth of Starbucks.

“Bringing together the world’s leading coffee retailer, the world’s largest food and beverage company, and the world’s largest and fast-growing installed base of at-home and single-serve coffee machines help us amplify the Starbucks brand around the world while delivering long-term value creation for our shareholders.”

The deal is also expected to further strengthen Nestlé’s coffee portfolio in the North American premium roast and ground and portioned coffee business.