A PYMNTS Company

US: Starbucks close to selling bagged coffee business

By  |  May 6, 2018

The world’s largest coffee company, Nestle, is close to a deal with Starbucks for the part of its business that sells bagged coffee and drinks in supermarkets, according to media reports on Friday, May 4.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    Any deal between the coffee giants would not involve any of the Seattle-based chain’s more than 28,000 cafes, according to Bloomberg.

    The deal could net Starbucks US$3.8 billion after tax, according to Cowen analysts, based on Starbucks’ operating earnings excluding its K-Cups and the multiple recently paid for Keurig Green Mountain. They predicted Starbucks would use that to buy back shares.

    Nestle and Starbucks both declined to comment.

    Starbucks, which last week reported a global drop in quarterly traffic to its established cafes, has been revamping its business. It recently sold its Tazo tea brand to Unilever or US$384 million and closed underperforming Teavana retail stores.

    Full Content: Bloomberg

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.