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Why Do Some Starbucks® Packaged Beans Say “Nestlé”?

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In 2018, Starbucks and Nestlé formed a long-term “Global Coffee Alliance” that lets Nestlé market, sell, and distribute Starbucks-branded at-home coffees (and many foodservice items) around the world. That’s why your grocery-store bag can read “Distributed by Nestlé.” It doesn’t mean Nestlé owns Starbucks, and it doesn’t change what you get in a Starbucks café. 

The 2018 Deal (in plain English)

Back in May 2018, Starbucks and Nestlé announced a sweeping partnership designed to get Starbucks coffee onto more kitchen counters globally. Nestlé paid $7.15 billion for the perpetual rights to market, sell, and distribute Starbucks-branded consumer packaged goods (think whole bean, ground, instant) and many foodservice items outside Starbucks coffee shops. In other words, Nestlé handles the grocery aisle and a lot of away-from-home placements; Starbucks keeps running its cafés. 

What Products Does Nestlé Handle?

Since the alliance kicked off, Nestlé has rolled out a broad Starbucks at-home lineup: whole bean and ground coffee, premium instant, Nespresso and Nescafé Dolce Gusto capsules, K-Cup pods, and even Starbucks creamers in many markets. If you’ve seen a Starbucks bag or pod on a supermarket shelf, there’s a good chance Nestlé put it there under license. 

What’s Not Included?

Two important carve-outs:

  1. Starbucks cafés: Drinks made in Starbucks stores aren’t part of the Nestlé deal. Those still belong to Starbucks. 
  2. Ready-to-Drink (RTD) in North America: Those bottled and canned Frappuccinos, Doubleshots, iced coffees, etc., are produced and distributed by the North American Coffee Partnership, a longstanding joint venture between Starbucks and PepsiCo (dating to 1994). That relationship continues today. 

Globally, Starbucks and Nestlé later expanded their collaboration to bring Starbucks-branded RTD beverages to Southeast Asia, Oceania, and Latin America—but that’s separate from the PepsiCo partnership in North America. 

So… Who Roasts the Beans?

The alliance is primarily about rights and distribution. Production can vary by product and region, but the key point for shoppers is that the brand standards, sourcing philosophies, and recipes are governed by Starbucks while Nestlé manages the retail reach. Practically, that’s why the bag in your cart might say “Starbucks®” on the front and “Distributed by Nestlé” on the back. 

A Quick Timeline

  • May 2018 — Starbucks and Nestlé announce the Global Coffee Alliance. 
  • Aug 2018 — Deal closes; Nestlé obtains perpetual global rights (outside Starbucks stores) for Starbucks consumer packaged goods and many foodservice products. 
  • 2019–2023 — Rapid rollout of Starbucks at-home products worldwide (beans, pods, instant, creamers). 
  • 2021 — Starbucks and Nestlé extend collaboration to RTD beverages in parts of Asia-Pac and Latin America. 
  • 2022 — Starbucks sells the Seattle’s Best Coffee brand to Nestlé, further aligning portfolios (separate from Starbucks cafés). 

How to Read the Label (and What It Means for Taste)

When you see “Distributed by Nestlé USA” (or a local Nestlé affiliate) on a Starbucks bag:

  • It reflects who gets the product into retail channels, not who “owns” Starbucks. Starbucks remains an independent company. 
  • It applies primarily to at-home products (whole bean, ground, capsules, instant, creamers). Your café latte still comes from Starbucks baristas, not Nestlé. 
  • Flavor profiles, blends, and sourcing ethics follow Starbucks’ brand standards; the alliance was built to scale distribution without reinventing the coffee fans already know. 

FAQs

Does this mean Nestlé owns Starbucks?No. It’s a licensing and distribution arrangement. Nestlé bought rights, not the company. 

Why did Starbucks do this?To rapidly expand Starbucks-branded coffee in grocery and foodservice channels worldwide while focusing on its café business and growth strategy. 

What changed for consumers?More Starbucks-branded choices at home (beans, pods, instant, creamers), often in more countries, plus some Starbucks RTD options in markets outside North America through the Nestlé collaboration. 

What about Seattle’s Best Coffee?In 2022, Starbucks sold the Seattle’s Best Coffee brand to Nestlé, so that brand is now part of Nestlé’s portfolio. 

Please note that if you purchase from clicking on the link, some will result in my getting a tiny bit of that sale to help keep this site going. If you enjoy my work, perhaps you would consider donating to my daily cup of coffee, thank you.

Single-Origin Coffee: A Journey of Flavor, Transparency, and Sustainability

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Single-origin coffee has evolved from a niche preference into a flourishing global phenomenon, captivating coffee enthusiasts everywhere. Today, savoring coffee goes beyond the beverage itself—it’s about embracing the stories behind each cup, from the region where it grows to the dedicated hands that nurture every bean.

The single-origin coffee market is experiencing impressive growth. Valued at approximately $14.82 billion in 2025, it’s projected to soar to $23.19 billion by 2034, marking a compound annual growth rate of 5.10%. In the U.S., the market stood at $3.38 billion in 2024, with expectations to reach $5.69 billion by 2034, growing steadily at 5.34% annually. This surge reflects a growing consumer appetite for distinctive flavors, along with heightened demands for transparency and traceability.

At its heart, single-origin coffee focuses on the precise location of cultivation, from broader regions and countries down to individual estates or specific coffee varietals. Among these, micro lots stand out by offering extraordinary precision. Typically sourced from a small, clearly defined section of a farm, micro lots score between 87 and 89 points on the Specialty Coffee Association (SCA) scale. They empower producers to highlight their best beans, command higher prices, and build lasting partnerships with discerning buyers.

At the peak of exclusivity lie nano lots, consisting of merely one or two 60-kilo bags of coffee, each scoring above 90 points on the SCA scale. These coffees epitomize ultimate traceability, showcasing distinct characteristics influenced by unique soil conditions, sunlight exposure, and precise rainfall patterns—factors integral to achieving exceptional coffee quality.

The traceability revolution of single-origin coffee provides detailed insights into cultivation and processing methods. Consumers learn specifics about elevation, coffee varietals, and processing techniques, enriching their coffee experience. Unlike blends, single-origin coffees clearly articulate their origins, meeting contemporary demands for accountability and authenticity.

Sustainability is deeply woven into this movement. As more consumers actively seek fair trade and organic certifications, protecting the environmental, social, and economic vitality of coffee-growing communities has become paramount. The Specialty Coffee Association notes that 65% of consumers now favor brands with environmentally responsible practices, encouraging coffee shops to actively educate their customers about coffee origins and the communities behind each brew.

Recent insights from the Specialty Coffee Transaction Guide reveal a significant trend: small-lot coffee contracts (less than 1,000 pounds) rose from 19% in 2016 to 25% in 2023. This underscores the increasing fascination with exclusive, highly traceable coffees. As prices rise, coffee drinking transitions from a daily routine to an engaging hobby filled with exploration and storytelling, where enthusiasts eagerly discuss details such as altitude, varietal, and processing methods.

Looking ahead, innovation in coffee processing and varietals is thriving. Producers now explore advanced techniques like anaerobic fermentation and cultivate unique hybrids such as Geisha. Exotic tasting notes—once niche—like hibiscus, jasmine, and tropical fruits are captivating a broader audience, marking a new chapter in coffee’s flavorful journey.

Single-origin coffee isn’t merely a passing trend—it’s a vibrant movement rooted in community, transparency, and the pursuit of unparalleled flavors. As the coffee landscape continues to evolve, single-origin offerings promise to enrich our daily cups with deeper stories of creativity, sustainability, and the committed individuals who bring exceptional coffee from farm to cup.

Please note that if you purchase from clicking on the link, some will result in my getting a tiny bit of that sale to help keep this site going. If you enjoy my work, perhaps you would consider donating to my daily cup of coffee, thank you.

What Fair Trade, Single Origin, and Shade Grown Really Mean

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When you’re browsing the coffee aisle or looking at coffee options online, you’ll often see terms like “Fair Trade,” “Single Origin,” and “Shade Grown” on the packaging. These labels are not just marketing buzzwords; they provide important information about the coffee’s quality, flavor, and how it was produced. Understanding these terms can help you make informed choices about the coffee you buy, both in terms of taste and in terms of the impact your purchase has on the environment and the communities that produced it. Let’s take a closer look at what each of these terms means.

Fair Trade: This is a certification that focuses on promoting equitable trade practices. The goal of Fair Trade is to ensure that farmers and laborers in developing countries are paid a fair price for their work and have decent working conditions. By buying Fair Trade coffee, you are supporting sustainable farming practices and contributing to the welfare of these communities.

Single Origin: Single Origin coffee is sourced from one single producer, crop, or region in one country. Single Origin can be a single farm, multiple farms from the same region, or even a single country. This term is used to indicate that the coffee beans have a specific taste or flavor profile that is unique to their specific location and conditions in which they were grown.

Shade Grown: This term refers to coffee that is grown under a canopy of trees. The method is a more traditional approach to coffee farming that promotes a more sustainable ecosystem. Shade grown coffee supports greater biodiversity, as the trees and plants provide habitat for a wide variety of birds and insects. It also typically requires fewer chemical inputs like pesticides, since the diverse ecosystem can better keep pests in check. Shade grown coffee plants also grow slower, which is thought to contribute to a richer flavor profile.

These labels can provide a lot of information about the coffee you’re drinking, but it’s also important to remember that they are voluntary certifications and claims. They can sometimes be subject to differing standards and enforcement practices. For the most accurate and detailed information, it can be helpful to do some research into the specific coffee brand or farm.

Please note that if you purchase from clicking on the link, some will result in my getting a tiny bit of that sale to help keep this site going.