Nestle’s first Starbucks-branded coffee products – launched in the UK, Spain, Belgium and Brazil last week – will hit store shelves in the Middle East in Q3, the company said. The two companies developed two dozen new products, 16 of which are capsules compatible with the Nespresso and Nescafe Dolce Gusto systems, Nestle said.
Prices for capsules will be on par with Nespresso, and the first markets include the UK, Spain, Belgium and Brazil. The Middle East and US will come later this year. Nestle paid $7.15 billion for the right to market Starbucks Corp. products last year as it seeks ways to rejuvenate the Nespresso capsule business, which used to be its biggest growth motor.
The alliance could help Nespresso return to annual growth rates for revenue exceeding 10 percent, according to Patrice Bula, chairman of the brand. ‘This is a moment where we’ll accelerate in premium,” he said at a press conference at Nestle’s headquarters in Vevey.
