Nestle and Starbucks have partnered to provide consumers with Starbucks flavored coffee capsules for use in Nestle's Nespresso Vertuo system, allowing coffee lovers to enjoy Starbucks coffee from home. The partnership will benefit both companies by expanding Nestle's international distribution and Starbucks' customer base, while increasing convenience for consumers. It is expected to increase sales for both popular brands by addressing challenges like affordability, quality, and accessibility of Starbucks coffee.

1. Nestle & Starbucks
Partnership
By: Nicole Anne
Teodoro

2. ● Nestle is a prominent brand that has
a great reputation in the food and
beverage industry.
● Nestle represents brands from
different categories such as
chocolates, beverages, coffees,
Icecreams, seasonings, etc (Nestlé,
2021).
● Even though they represent different
brands, they stay consistent with
their values within each brand.

3. Nestle’s Coffee Brands
Nescafe Nespresso Nescafe Dolce
Gusto

4. ● Starbucks is known for its high
quality coffees, coffee shop
ambience and high prices.
● Starbucks offers its consumers
with fresh roasted coffee beans,
tea and spices.
● Mission: “to inspire and nurture the
human spirit – one person, one
cup, and one neighborhood at a
time” (Starbucks Coffee
Company, 2021).

5. ● The purpose of Nestle and Starbucks’
partnership is to provide consumers with
the opportunity to create their own
Starbucks flavoured hot beverages from
the comfort of their own home.
● Nestle is launching a new line of coffee
capsules called “Starbucks at home” for
the Nespresso Vertuo system which allows
coffee lovers to enjoy Starbucks coffee
from the comfort of their own homes
(Starbucks® by Nespresso, 2021).
Partnership Details

6. DISTRIBUTION COUNTRIES
BRAZIL
CHINA
MEXICO JAPAN
NEW ZEALAND
CHILE
AUSTRALIA
HONG
KONG
MALAYSIA
SINGAPORE
TAIWAN
SOUTH AFRICA
UNITED KINGDOM
The campaign was delivered through different channels and is launched through 15
different countries (Abiodun, 2020).

8. Point of View
& Opinion

9. Benefits
CONSUMERS
● Increase Loyal
Customers
● Increase Satisfaction
● Expands Customer
base
● Increase threat level in
comparison to its
competitors.
NESTLE
STARBUCK
S
● Expand their reach due to
Nestle’s international
distribution channels.
● Less work, since Nestle
is taking over coffee
ground productions.
CONVENIENCE/
ACCESSIBILITY
● It’s more convenient
for consumers since
they don’t have to
drive to a Starbucks
location just to have
Starbucks drinks.
● Can be bought from
the supermarket or
through online
channel.
AFFORDABILITY
● Buying in bundles is
much more
affordable than
buying one cup of
coffee everyday.

10. Datas from Nasdaq states that the Global
Market Share in 2017 are (Zacks, 2018):
● Nescafe = 15.0%
● Nespresso = 4.5%
● Starbucks = 2.4%
U.S Market Share
● Nescafe = 2.2%
● Nespresso = 2.4%
● Starbucks = 12.8%
Therefore, Starbucks can help Nestle build its
market share in the US while Nestle can help
Starbucks expand its distribution channel to
different places around the world. It can be
very beneficial since it will increase both
companies’ sales.

11. ● Nestle and Starbucks are both
popular brands and having the
partnership can provide many
benefits from all parties
(consumers, Nestle and
Starbucks) as stated in the
previous slide.
● Combining the values of both
companies will enhance the
experience of its consumers
and can target the challenges
that they are currently having.
For example, affordability,
quality, convenience and
accessibility.

12. ● It can also target the companies’
challenges such as growth
capabilities, customer retention, loss
of market shares, competitors and
more.
● Nestle’s decision in creating a new
coffee line and incorporating a
popular brand in the coffee segment,
will enhance its performance in the
market since they are adding value to
the consumers which can influence
their popularity in comparison with
their competitors.

14. Work Cited
Abiodun, N. (2020, July 3). Nestlé & Starbucks launch a new global campaign created by McCann Worldgroup. The
Drum. Retrieved October 14, 2021, from https://www.thedrum.com/profile/mccann-worldgroup-
europe/news/nestle-starbucks-launch-a-new-global-campaign-created-by-mccann-worldgroup.
Nestlé. (2021). About Us. Nestlé Global. Retrieved October 14, 2021, from https://www.nestle.com/aboutus.
Starbucks Coffee Company. (2021). About us: Starbucks Coffee Company. About Us: Starbucks Coffee Company.
Retrieved October 14, 2021, from https://www.starbucks.ca/about-us/.
Starbucks® by Nespresso. (2021, September 29). Nestlé and Starbucks® launch a new range of Starbucks capsules for
Nespresso Vertuo. Cision Canada. Retrieved October 14, 2021, from https://www.newswire.ca/news-
releases/nestle-and-starbucks-r-launch-a-new-range-of-starbucks-capsules-for-nespresso-vertuo-
805596764.html.
Zacks. (2018, May 8). Nestle-Starbucks Distribution deal: Win-win. Nasdaq. Retrieved October 14, 2021, from
https://www.nasdaq.com/articles/nestle-starbucks-distribution-deal-win-win-2018-05-09.

15. THANK YOU
FOR
LISTENING!