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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.

Elevate Your Conference Experience: Navigating Coffee Woes

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Attending an in-person conference often opens up a world of possibilities—new learning experiences, the chance to build valuable networks, and engaging with innovative ideas in your field. However, amidst the bustling environment and packed schedules, the quality of coffee provided at such events can sometimes fall short, becoming a minor damper in an otherwise enriching experience. A good cup of coffee not only rejuvenates your senses but can also act as a catalyst for productive conversations and brainstorming sessions. Therefore, having access to a satisfying coffee can subtly yet significantly enhance your conference experience. 

As you gear up to dive into the intellectual fervor of the event, ensuring a good coffee experience might just give you that extra zest to engage proactively. Here are some pragmatic suggestions to circumvent the often mediocre coffee provisions at conferences, ensuring you remain caffeinated with quality brew as you navigate through the event.

Bring Your Own Coffee:

Pre-made Coffee: Opting for pre-made coffee is a reliable way to ensure you have access to a high-quality brew during the conference. You may want to check the conference web site to find out if they won’t let you carry beverages into the event. If they do not, jump down to the Instant Coffee option. Here options and considerations:

Brewing at Home:

If you have a preferred method of brewing or a favorite blend, making your coffee at home is the best way to guarantee a satisfying cup.

Experiment with different brewing methods (e.g., drip, French press, espresso) and coffee beans to find what you enjoy the most not only when you make it but keeps for a while if you need to sip along the day. 

Instant Coffee:

Instant coffee is a convenient choice, especially when you’re unsure of the availability of brewing apparatus. Not all instant coffees are created equal. Some premium brands offer instant coffee that closely resembles the taste and aroma of freshly brewed coffee. Not all instant coffees where created with the same process or have the same ratios so double check the label or test prior to using at an event.

Purchasing Coffee to Carry in:

If you’re short on time or prefer professionally brewed coffee, consider stopping by a reputable coffee shop on your way to the conference. There is usually small coffee shops positioned to be handy to drop by. When the conference is in an attached building to the conference, the hotel may offer quality coffee in togo cups.

Local Coffee Shops to Escape to:

Locate nearby coffee shops and plan some time to step out for a coffee break. This can also be a great opportunity to stretch your legs and get some fresh air. I use that as a great time to have a networking or talk through details with an individual outside of the noise of the conference. A bit of networking can be done in line too, if the shop is close to the event, you will notice recognizable lanyards being worn by other attendees escaping for a coffee.

Upgrade the Conference Coffee with Syrups and Creamers: 

Sometimes, it isn’t that the coffee is weak or an off brand, you may just have a taste preference that lends its self to bringing your own additives. There are small containers or ‘travel packaging’ options of flavored syrups, creamers, or even a spice like cinnamon to add to the conference coffee.

Feedback to Organizers:

If the coffee quality is consistently poor, it might be worth providing feedback to the conference organizers. They might consider upgrading the coffee service in the future based on attendees’ feedback.

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.