Nestle, the biggest coffee company and factory in the world, rumored to approach an agreement finalization to Starbucks Corp for being a part of its business selling coffee and packed drinks in supermarket. The agreement is being rumored to sign soon on Monday, 7th May 2018 or this week. The cooperation of Nestle and Starbucks is not surprising badly to the people because it has been predicted to have it.
Taking a quote of Reuters, Friday, 4th May 2018, the agreement can produce income about US$3,8 million after tax for Starbucks. The coffee company from Seattle reported the global decrease recently last week in quarter traffic to its cafes. It is rumored to keep improving its business to be stronger and better. It seems to be a hot kick for one of big coffee companies. That’s why Starbucks tries to have a good cooperation with a potential company to save its business in the world.
To maintain its brand and popularity, Starbucks did some innovations and improvements. Starbucks was selling a tea brand of Tazo to Unilever with a price estimation of US$ 384 million and close a retail store of Teavana having bad performance in US. It makes Starbucks need to find a potential business partner for giving long breath in its business.
Starbucks has realized its business license previously. The realization is about selling a packed coffee product to Kraft Foods. But, it finally ended a contract in 2011 giving the business to Acosta Inc. Some efforts are conducted by Starbucks to stay big and have a good reputation in the world. The partnership of cafe chain with Kraft will end in 2014. However, Starbucks find the early solution and get forced by arbitrator to pay off US$ 2,76 million to Kraft, at that time divided into two parts. The payment belongs to Mondelez International.
Nestle, a big packed food company in the world, has some transactions of license with the other companies. It means that it becomes a much potential company in the world to have a cooperation and prospective relationship to other companies. Nestle is known to sell trading brands of Haagen – Dazs General Mills in United States and Hershey selling KitKat Nestle in United States as well. Nestle is known famously to produce foods, coffee products, and milk. The cooperation contract of Nestle and Starbucks looks so important for the future business of both companies.