Financial terms of the agreement between KDP and Nestlé were not disclosed
Keurig Dr Pepper, Inc. (KDP) announced that it has entered into a long-term, strategic agreement with Nestlé USA (Nestlé) to manufacture and distribute Starbucks branded packaged coffee in K-Cup® pods in the U.S. and Canada.
The new agreement with Nestlé, which acquired the rights in August 2018 to market and distribute Starbucks CPG and Foodservice products globally, outside of Starbucks coffee shops, will replace the existing K-Cup® pod agreement between KDP and Starbucks Corporation (Starbucks) following a transition period.
Derek Hopkins, Keurig Dr Pepper Chief Commercial Officer stated, “Today’s announcement with Nestlé recognizes the success of the Keurig and Starbucks strategic relationship, which dates back to 2011. It also underscores the mutually-beneficial nature of that partnership and the significant, untapped opportunities that still exist for the single serve coffee category in North America.”
Tony Matta, President of Nestle Coffee Partners said, “We are excited to enter into an agreement directly with KDP that enables us to continue the strategic partnership and accelerate growth of the Starbucks brand on the Keurig K-Cup® platform.”
Financial terms of the agreement between KDP and Nestlé were not disclosed.