Nestle pays US$7.2bil to sell coffee with Starbucks brand

FILE - In this April 7, 2016, file photo Nestles directors speak in front of the Nestles logo during the general meeting of Nestle Group, in Lausanne, Switzerland. Nestle has entered an agreement to bring Starbucks products to millions of homes worldwide, announced Monday, May 7, 2018. (Laurent Gillieron/Keystone via AP, File)

ZURICH: Nestle SA and Starbucks Corp are joining forces to rejuvenate their coffee empires.

The Swiss maker of Nescafe will pay the Seattle-based chain US$7.15bil upfront in cash for the rights to sell Starbucks coffee products in supermarkets, restaurants and catering operations, the companies said yesterday. Nestle will use the Starbucks brand in its Nespresso and Dolce Gusto capsule systems next year.