Nestle considering plans to bring Starbucks coffee products to Indian retail space 

In an interesting development for the FMCG space, Nestle S.A., reportedly the world’s largest coffee company, is considering the possibility of introducing Starbucks-branded ready-to-drink (RTD) coffee products in Indian retail, according to media reports.

The move is reported to be part of Nestle’s global partnership with Starbucks Corporation, which allows it to sell Starbucks’ packaged coffee and beverages outside of its cafes.

Nestle and Starbucks signed a global deal in 2018, granting Nestle the rights to market Starbucks’ packaged coffee and food service products in retail stores worldwide. The partnership was later expanded to launch RTD coffee products, such as Starbucks Frappuccinos and Doubleshots, across Southeast Asia, Oceania, and Latin America. And now, Nestle is considering a similar expansion in India.

The Starbucks-Tata joint venture, which operates over 470 stores in India, reportedly recorded a revenue of Rs 1,218.06 crore in FY24, marking a 12 per cent increase from the previous year. 

It appears that Nestle has not yet finalised a timeline for the Starbucks’ RTD coffee launch in India, but sees the market as a significant opportunity, say reports quoting Axel Touzet, head of Nestlé’s Coffee Strategic Business Unit.

It would be interesting to see how Nestle would be leveraging the brick and mortar retail space to sell Starbucks products.