Nestle and Starbucks

Approximately 500 Starbucks employees in the United States and Europe are being hired by Nestlé, most of them in Seattle and London, as part of the recently signed marketing arrangement between the two companies. The international expansion of the business will be led from Nestlé’s global headquarters in Vevey, Switzerland.

In May, Nestlé agreed to pay $7.15 billion for the right to market Starbucks products, putting its global network behind one of the biggest names in coffee.

Nestlé is harnessing the name recognition of Starbucks, with its 28,000 outlets around the globe and massive draw in the U.S., according to a report in Fortune. Nestlé has historically struggled marketing its own products like Nespresso and Dolce Gusto in the U.S.

The agreement covers Starbucks packaged coffee and tea brands, such as Starbucks, Seattle’s Best Coffee, Teavana, Starbucks VIA Instant, Torrefazione Italia coffee and Starbucks branded K-Cup pods. It excludes Ready-to-Drink products and sales within Starbucks coffee shops.

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