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Starbucks and Nestlé expand Global Coffee Alliance to China

From the August 2019 issue.

Starbucks and Nestlé have announced a new “premium coffee experience” for Chinese consumers, with the introduction of Starbucks At Home and We Proudly Serve Starbucks Coffee integrated business solutions in foodservice channels.

This is the alliance’s first step into China since the two companies formally joined forces in August 2018.

The nationwide rollout consists of a new range of 21 products, including whole bean and roast and ground packaged coffees, as well as the first-ever Starbucks capsules jointly developed since the two companies formed the Global Coffee Alliance in 2018.

“For 20 years, we’ve pioneered the Starbucks Experience for customers in China, and today through our alliance with Nestlé, we’re unlocking new premium coffee experiences to better suit our customers’ daily lives outside of our Starbucks retail stores,” says Belinda Wong Chairman and CEO of Starbucks China.

“This is only the beginning — the addressable market for coffee in China is rapidly growing and we’ll continue to expand our reach and innovate to deliver signature Starbucks coffees on Nestlé’s proprietary systems and platforms to expand our customer reach for new occasions.”

The alliance is part Starbucks and Nestlé’s strategic partnership to expand the global reach of Starbucks brands in consumer packaged goods (CPG) and foodservice segments.

Building on Nestlé’s single serve capsule systems, including Nespresso and Nescafé Dolce Gusto, Starbucks At Home introduces Starbucks espresso capsules in flavours such as Caramel Macchiato and Cappuccino.

The full range of Starbucks at Home products will be widely available across e-commerce flagship stores on Tmall, JD.com and Suning.com.

Starbucks will also start rolling out We Proudly Serve Starbucks Coffee, an integrated business solution in foodservice channels, across office and hospitality locations in tier-one Chinese cities, with the aim to gradually expand to more cities over the next five years.

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