Nestlé is set to introduce Starbucks-branded coffee for home consumption in India, building on its 2018 partnership with Starbucks. This collaboration enables Nestlé to market Starbucks products globally, excluding sales within Starbucks coffee shops. As the largest coffee company in the world, Nestlé is exploring the launch of Starbucks-branded coffee for at-home use in India, leveraging the rights obtained in their 2018 agreement to package and sell Starbucks’ specialty roasts and instant mixes outside of coffee shop settings.
The partnership allows Nestlé to offer a diverse range of products, including Starbucks capsules compatible with Nespresso and Nescafé Dolce Gusto machines, as well as whole bean, roast and ground, and premium instant Starbucks coffees, K-Cup pods, and more in retail outlets. However, the agreement specifically excludes the sale of any products within Starbucks coffee shops.
While this collaboration has been extended to major markets, it has not yet reached India. Axel Touzet, head of Nestlé’s Coffee Strategic Business Unit, stated, “Nestlé has a global coffee partnership with Starbucks that allows both companies to bring to market a wide range of products. We continue to evaluate similar opportunities to expand our coffee portfolio in India to target different coffee consumption moments as more and more people in India look to coffee as their favorite beverage.” During a recent visit to the company’s coffee plant in Nanjangud near Mysore, Touzet emphasized the potential for selling premium coffee products in India.
Despite India being predominantly a tea-drinking nation, the rise of café culture in major metropolitan areas over the past decade has sparked increased interest in coffee, with more consumers opting to brew coffee at home. Starbucks currently operates over 450 stores in India through a joint venture with Tata Consumer Products Ltd. However, Nestlé retains the rights to sell and distribute packaged products such as whole bean, roast and ground, and premium instant Starbucks coffees in retail stores. As of 2023, the partnership has expanded the availability of Starbucks-branded premium products to nearly 80 markets worldwide, generating $1.6 billion in incremental sales for Nestlé in 2022.
Touzet clarified, “The (Starbucks) cafes are always a separate activity. We have the rights worldwide, essentially, to distribute FMCG products, with one exception, which is ready-to-drink coffee, handled by different distributors globally. However, roast and ground coffee remains within our purview.”
