Nestle pays 7.1 billion dollars to Starbucks to sell its coffee

BBC has reported that Nestle has paid 7.1 billion dollars to Starbucks to acquire the right to sell Starbucks coffee.

With this deal Nespresso machine owners can buy Starbucks coffee branded pods for use at home as well.

Furthermore Starbucks coffee beans, ground and instant coffee will be available like Nestle products for consumers. Nestle is world’s largest food and drinks company and hence Starbucks products will be made available in their distribution networks.

Nestle made this deal because the company believes that Starbucks products will appeal to premium coffee lovers around the world. Shareholders of Nestle company are in favor of the deal despite the high price tag.

In recent times Nestle has been trying to expand their businesses. Last year the company paid 425 million dollars for a 68% stake in Blue Bottle Coffee, an American company which sells coffee online.

Nestle products such as milo powder and milo drinks are popular in the Maldives as well.