Nestlé plans to bring ready-to-drink Starbucks coffees to retail stores

Nestlé, in collaboration with Starbucks, is reportedly planning to introduce the global coffee chain’s products to the retail market beyond cafés. The two companies have a global coffee partnership that enables them to launch a diverse range of products.  

As per a report in The Economic Times, Axel Touzet, head of Nestlé’s coffee strategic business unit, stated that the company aims to expand its coffee portfolio in India to cater to various coffee consumption occasions.

Nestlé and Starbucks signed a global agreement in 2018, granting Nestlé the rights to market Starbucks' packaged coffee and food service products outside its cafés. According to the report, this arrangement does not affect Starbucks’ joint venture with Tata Consumer Products, which operates the coffee chain in India.  

The two companies have also announced plans to expand their partnership by launching ready-to-drink coffee beverages in Southeast Asia, Oceania, and Latin America. This includes products like Frappuccinos and Doubleshots.  

Touzet stated that Nestlé has the rights to distribute Starbucks’ ready-to-drink coffee as an FMCG product and is eager to explore the Indian market, given its rapid growth for Nescafé. While India is traditionally a tea-drinking nation, he emphasised the significant potential for coffee in the country.

Nestlé and Starbucks are collaboratively developing a range of products, including whole bean, roast, ground, and premium instant Starbucks coffees, as well as capsules, Nespresso pods, and creamers.  

Starbucks entered the Indian market in October 2012 through a 50:50 joint venture with Tata Consumer Products, which currently operates over 470 stores. According to the report, the partnership with Nestlé is separate from Starbucks' joint venture with Tata Consumer Products.