Nestle's $7.1 billion alliance with Starbucks has now been finalized. That allows it to exclusively sell the U.S firm's packaged coffees and teas around the world. The deal will give Starbucks a greater presence in China, Nestle's second biggest market. As part of the tie up, 500 Starbucks employees will also move to the Swiss firm.
Starbucks says it will use the cash payment from their slate to increase planned stock buy backs over the next few years to $20 billion. The agreement also includes Starbuck's branded capsules for Nestle's Nespresso and Dolce Gusto machines. Nestle expects the partnership to add to its earnings by 2019, and to boost the brand in North America.
There, it ranks fifth, with less than 5% of the coffee market.