Starbucks is planning to form a global coffee alliance with Swiss food and beverage firm Nestlé to expand the footprint of its brands in the consumer packaged goods and foodservice segments across the globe.

As per the terms of the agreement, Nestlé will pay Starbucks $7.15bn in closing consideration and Starbucks will retain a significant stake as licensor and supplier of roast and ground coffee, as well as other products.

Additionally, the Starbucks brand portfolio will be represented on Nestlé’s single-serve capsule systems.

Under the new alliance, Nestlé will have the rights to market, sell and distribute Starbucks, Seattle’s Best Coffee, Starbucks Reserve, Teavana, Starbucks VIA and Torrefazione Italia packaged coffee and tea in all global at-home and away-from-home channels.

The agreement does not include Starbucks ready-to-drink coffee, tea and juice products.

Starbucks president and chief executive officer Kevin Johnson said: “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.

“This historic deal is part of our ongoing efforts to focus and evolve our business to meet changing consumer needs, and we are proud to work alongside a company that is committed to our shared values.”

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“This historic deal is part of our ongoing efforts to focus and evolve our business to meet changing consumer needs, and we are proud to work alongside a company that is committed to our shared values.”

The deal is expected to close later this year after obtaining necessary customary and regulatory approvals from the authorities.

Nestlé CEO Mark Schneider said: “This transaction is a significant step for our coffee business, Nestlé’s largest high-growth category.

“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 a 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.”

Through the new alliance, Starbucks intends to create new growth opportunities in North America, as well as in the international markets using the global reach of Nestlé and its coffee brands.

According to the agreement, Starbucks will also be responsible for sourcing and roasting coffee, as well as its global brand management for the alliance.