Nestle Starts to sell Starbucks Coffee in China


From Thursday the Nestle started selling Starbucks brand’s coffee in China. The CEO of Nestle said that they are observing a potential market for coffee in China. After the launching, the project Nestle experiencing a steady stock price growth.

Nestle-Nestle sa
Nestle-Nestle SA

Nestle is a swiss multinational company that processes food and drink. The headquarter of nestle is in Vevey, Vaud, Switzerland. Nestle is the largest food company in the world by revenue and also in the other metrics from 2014.

Nestle Chocolate Chips & Cookies-Nestle Toll House
Nestle Chocolate Chips & Cookies-Nestle Toll House

Nestle ranked 64th on the Fortune Global 500 in 2017 and also 33rd of the Forbes Global 2000 list on the 2016 edition in the category of largest public companies.

Nestle Water- Nestle Pure Life Water
Nestle Water- Nestle Pure Life Water

Nestlé’s consumer goods include baby food, medical food, dairy products, ice cream, frozen food, bottled water, breakfast cereals, coffee, tea, confectionery, pet foods, and snacks. Twenty-nine of Nestle’s brands have yearly sales of over CHF1 billion, which is about US$1.1 billion this including Nespresso, Nescafé, Smarties, Nesquik, Kit Kat, Stouffer’s, Vittel, and Maggi. Nestle has 447 factories that operate in 189 countries and have employees of approximately 339,000 people.

Nestle is one of the principal shareholders of L’Oreal, which is the world’s largest cosmetics company.

Nestlé was founded in 1905 by the merger of the Anglo-Swiss Milk Company which established in 1866 by the George brothers, Charles Page, and Farine Lactée Henri Nestlé which was founded in 1866 by Henri Nestlé. Nestle grew dynamically during the First World War and also the following Second World War, which was expanding its offerings tremendously; its early condensed milk and infant formula products.

Nestle Products
Nestle Products

Nestle has made a massive number of corporate investments including Crosse & Blackwell in 1950, Findus in 1963, Libby’s in 1971, Klim in 1998, Rowntree Mackintosh in 1988, and Gerber in 2007. Nestle has many controversies which are facing criticism and boycotts on its marketing of baby formula milk powder as an alternative to breastfeeding in developing countries especially in the African region; it harasses on child labor in cocoa production and also in the production and promotion of bottled water.

Recently, Nestle Health Science has made several purchases. Nestle acquired Vitaflo which makes clinical nutritional products for people who have genetic disorders; CM&D Pharma Ltd. is a company that specializes in the development of medicines for patients with chronic conditions like kidney disease and Prometheus Laboratories which is a firm specializing in the treatments for gastrointestinal diseases and cancer.

Nestle also maintains the minority stake in Vital Foods which is a New Zealand-based company that develops kiwifruit-based solutions for digestive conditions in 2012. Nestle declared that it would lower the sugar amount in Kit Kat, Yorkie and Aero chocolate bars by 10% within 2018. In July 2018, it followed a similar announcement regarding the reduction of sugar content in its breakfast cereals in the UK.

Ulf Mark Schneider-ceo of Nestle
Ulf Mark Schneider-CEO of Nestle

Nestle discloses a $20.8 billion share buyback in June 2017 which is the following publication of a letter written by Third-Point Management founder Mr. Daniel S. Loeb that is the Nestlé’s 4th largest stakeholder with a $3.5 billion stake which explaining how the firm should modify its business structure.

Therefore, the firm will allegedly focus investment in sectors such as coffee and pet care and will seek investments in the consumer health-care industry. Nestlé S.A. gained a majority stake of Blue Bottle in September 2017. At that time the deal’s financial details were not disclosed which is reported in Financial Times “Nestle is made to be paying up to $500m for the 68 percent stake in Blue Bottle”.

Nestle Stock- Latest Nestle Stock Price
Nestle Stock- Latest Nestle Stock Price

This year Blue Bottle expects to increase sales by 70%. Nestlé also announced the launch of the Nestle Alumni Network through a strategic partnership with SAP & Enterprise Alumni to run their over 1 million Alumni globally in October 2018. Recently Nestlé also announced to sell Gerber Life Insurance for $1.55 billion.

The Joint Ventures of Nestle

  • Cereal Partners Worldwide with General Mills (50%/50%).
  • Beverage Partners Worldwide with The Coca-Cola Company (50%/50%).
  • Nestlé Modelo with Grupo Modelo.
  • Dairy Partners America Brasil with Fonterra (51%/49%).
  • Lactalis Nestlé Produits Frais with Lactalis (40%/60%).
  • Nestlé Colgate-Palmolive with Colgate-Palmolive (50%/50%).
  • Nestlé Indofood Citarasa Indonesia with Indofood (50%/50%).
  • Nestlé Snow with Snow Brand Milk Products (50%/50%).



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