Nestle is reportedly planning, in a partnership with Starbucks, to bring the global coffee chain’s products to the retail market outside cafes. Nestle has a global coffee partnership with Starbucks that allows both the companies to bring out a wide range of products.
According to a report in The Economic Times, head of Nestle’s coffee strategic business unit, Axel Touzet, the company is planning to expand their coffee portfolio in India to target different coffee consumption moments.Â
Nestle and Starbucks had signed a global deal in 2018 that gave Nestle rights to market Starbucks’ packaged coffee and food service products outside of its coffee shops. The report added that this does not impact Starbucks’ joint venture with Tata Consumer Products that operates the coffee chain in the country.Â
The two companies said that they are extending their partnership to launch ready-to-drink coffee beverages in markets across Southeast Asia, Oceania and Latin America, under which they would roll out products like Frappuccinos and Doubleshots.Â
Touzet said that Nestle has the right to distribute Starbucks ready-to-drink coffees as FMCG products, and they are keen on exploring India as it is one of the fastest markets for Nescafe. Even though India is a tea-drinking market, there is tremendous potential for coffee, he said.Â
They are jointly developing a range of products including wholebean, roast, ground and premium instant Starbucks coffees, capsules, Nespresso pods and creamers.Â
Starbucks had entered India in October 2012 through a 50:50 joint venture with Tata Consumer Products. The joint venture operates more than 470 stores. The arrangement with Nestle is exclusive of Starbucks’s joint venture with Tata Consumer Products, the report added.
Shares of Tata Consumer Products were trading higher in pre-opening trade today. The stock has climbed around 13 per cent in 2025 so far.