The reports state that Nestle is exploring ways to expand its coffee portfolio in India, aimed at tapping the market
In order to develop and sell Starbucks’ ready-to-drink coffees in the country’s retail market, Nestle SA is evaluating options regarding bringing its global partnership with Starbucks Corporation to India, as per the media reports.
As Nestle has a global coffee partnership with Starbucks that enables both companies to market a diversified range of offerings, Nestle is evaluating ways to expand its coffee portfolio in India, aimed at tapping the growing market in the country, Axel Touzet, the head of Nestle’s coffee strategic business unit told a leading media house.
The report added that Nestle and Starbucks were aiming to expand their partnership to introduce ready-to-drink coffee beverages in markets across Southeast Asia, Oceania and Latin America. The reports highlighted that the companies stated that they would be rolling out products to select markets in these regions as part of the extended partnership. The deal between both companies has no impact on the joint venture between Starbucks and Tata Consumer Products in India.
Touzet added that there exists a tremendous potential for coffee in India and that makes the rights to distribute Starbucks coffee outside of cafes so important for the company. As per the reports, wholebean, roast and ground and premium instant Starbuck coffees, capsules, Nespresso pods and creamers are some of the products that could be developed jointly.
In its December quarter earnings last week, Nestle India stated that the powdered and liquid beverages business of the company was the largest contributor to growth during the quarter as they posted high double-digit growth. The reports added that driven by diversified flavours and increasing consumer incomes, the global ready-to-drink tea and coffee market is estimated to grow to USD 197.4 billion in sales by 2032, compared to USD 107.18 billion in 2023.
