Nestle Doing Well on Starbucks

The worlds largest FMCG company Nestle seems to be doing better than before. The company reported a 4.3% increase in sales in the first quarter and this is thanks to their partnership with Starbucks as people enjoy drinking a Starbucks coffee outside of Starbucks.

In May last year, Nestle announced that it was going to pay Starbucks a mouthwatering $7.1 billion to license its brand of packaged coffee products sold outside of Starbucks chain stores. For example, the Nespresso capsules/pods and branded beans that are sold at your local grocer.



In February this year, Nestle launched a new range of 24 Starbucks-branded products. These include whole bean, roast, and ground, as well as capsules/pods developed using the Nespresso and Nescafe Dolce Gusto coffee technology.

Nestle said it expects continued sales growth in the 2019 financial year, thanks to coffee as well as strong performance from the pet-care products portfolio. With the constant change in consumers food taste, Nestle has to play catch-up and also expand beyond its comfort zone to see meaningful growth.