A Starbucks coffee shop in Lucerne, Switzerland
Keystone
The Swiss food giant Nestlé is set to pay Starbucks $7.1 billion (CHF7.1 billion) to market the American firm’s products outside Starbucks’ coffee shops.
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Under the alliance deal, announced on Monday, Starbucks and Nestlé have agreed to work together on marketing strategies and innovation.
“This transaction is a significant step for our coffee business, Nestlé’s largest high-growth category,” Nestlé chief executive officer (CEO) Mark Schneider said in a statement on MondayExternal link.
“With Starbucks, Nescafé and Nespresso we bring together three iconic brands in the world of coffee.”
Nestlé says the deal should provide it with a platform for “continued growth in North America with leadership positions in the premium roast and ground and portioned coffee businesses”.
Starbucks’ out-of-shop sales generate $2 billion in annual revenues. Coffee and creamers generate CHF17 billion revenues for Nestlé, roughly a fifth of its turnover.
Starbucks plans to use the money from the new deal to accelerate share buybacks and now expects to return approximately $20 billion in cash to shareholders in the form of share buybacks and dividends through fiscal year 2020, it said in a statementExternal link.
Train vs plane: would you take a direct train between London and Geneva?
Eurostar is planning to run direct trains from Britain to Germany and Switzerland from the early 2030s. Would you favour the train over the plane? If not, why not?
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Swiss rental housing listings increase for the first time in three years
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Switzerland doing relatively well when it comes to child vaccination rates
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Swiss scientists use coffee for a new kind of energy boost
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A booklet by the Swiss Heritage Society, Die schönsten Cafés und Tea Rooms in der Schweiz (Switzerland’s most beautiful cafés), presents a selection of 74 sites from across the country. It includes traditional cafés, stylish espresso bars, wood-panelled interiors in the rural Lower Engadine valley and light-flooded new sweet shops in Geneva, as well as…
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