---
title: "Latest: Nestlé and Starbucks Global Coffee Alliance Launches in China! We Talked with the Big Bosses of Both Sides"
description: "Nestlé has announced the official launch of its global coffee alliance with Starbucks in mainland China, introducing the new 'Starbucks At Home' product range. This means consumers can now buy Starbucks coffee products in more places and make a cup of Starbucks coffee at home just like in stores. Additionally, the two companies will provide the 'We Proudly Serve Starbucks Coffee' solution for out-of-store consumption scenarios, such as office pantries and hotel rooms."
author: "何丹琳"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
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published: "2019-08-10"
language: "en"
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# Latest: Nestlé and Starbucks Global Coffee Alliance Launches in China! We Talked with the Big Bosses of Both Sides

> Nestlé has announced the official launch of its global coffee alliance with Starbucks in mainland China, introducing the new 'Starbucks At Home' product range. This means consumers can now buy Starbucks coffee products in more places and make a cup of Starbucks coffee at home just like in stores. Additionally, the two companies will provide the 'We Proudly Serve Starbucks Coffee' solution for out-of-store consumption scenarios, such as office pantries and hotel rooms.

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Recently, Nestlé announced that its global coffee alliance with Starbucks has officially entered the mainland China market, launching the new 'Starbucks At Home' product range. **This means you can now buy Starbucks coffee products in more places and make a cup of Starbucks coffee at home just like in stores.**
At the same time, the two companies will also provide the 'We Proudly Serve Starbucks Coffee' overall coffee solution for out-of-store drinking scenarios. **In other words, you will have the opportunity to enjoy Starbucks coffee in office pantries, hotel rooms, and other places.**
At the launch event of the Nestlé Starbucks Global Coffee Alliance in China, it was noted that **this is the first time Starbucks coffee products have officially entered home-use scenarios and out-of-store channels such as foodservice in mainland China.**
What possibilities will the strong alliance of these two giants bring to their coffee businesses in China? Just now, Foodinc had a more in-depth exchange with Mr. Rashid Aleem Qureshi, Chairman and CEO of Nestlé Greater China, and Belinda Wong, Chairman and CEO of Starbucks China, after the press conference.
Below, please see the report from Foodinc at the scene.
**Home Scenarios**
Let's first take a look at what the new products look like.
Foodinc saw at the scene that **the 'Starbucks At Home' product range launched in mainland China this time includes a total of 21 products, including roasted coffee beans, ground coffee, and the first Starbucks coffee capsules developed for Nespresso and Nescafé Dolce Gusto coffee machines.**
Now, this home series has officially debuted. **"We have launched the Starbucks At Home series in 16 markets, including Hong Kong and Taiwan, and early sales results have been very positive,"** Qureshi told Foodinc today. Through this series, Chinese consumers can "make a cup of their favorite and personalized Starbucks coffee at home without leaving the house."
Now, this Starbucks At Home series is available for purchase on e-commerce platforms.
**"We first launched this Starbucks series on e-commerce platforms and will gradually roll it out in offline premium supermarkets, and in the future, we will expand to more cities," Qureshi told Foodinc. The new product series is mainly targeted at the middle class and young consumers born after 1990.**
In a statement today, Nestlé pointed out that **the above new products have been launched on "Tmall Starbucks At Home Flagship Store," "Starbucks At Home JD Self-operated Flagship Store," and "Starbucks Suning Self-operated Flagship Store." Foodinc noticed that these are independent flagship stores newly opened for the cooperation business.**
Foodinc browsed one of the flagship stores today and saw that the store has fully launched four categories of products: Dolce Gusto capsules, Nespresso capsules, Starbucks coffee beans, and ground coffee. Among them, the price of 10-capsule packs ranges from 40 to 50 yuan, while coffee beans and ground coffee are both priced at 75 yuan per pack.
**Out-of-Store Channels**
At the same time, Nestlé also announced today the official launch of the 'Starbucks Coffee Service' overall solution in China. Unlike the above business that targets home coffee consumption and directly sells to end consumers, **this channel mainly targets B2B customers, covering offices, restaurants, hotels, and other channels.**
In a statement today, Nestlé said that **in 2019, the 'Starbucks Coffee Service' solution will prioritize covering first-tier cities, with plans to expand to more cities in the next five years.**
**At this stage, Nestlé will focus on two major channels: offices and hotels.**
The leftmost bar chart shows that based on 2018 coffee sales, Nestlé is the world's largest coffee company, followed by Starbucks (source: Nestlé).
In addition, Rennie also mentioned at the time that the growth of office coffee reflects two major trends: as more and more people spend longer hours in the office, many offices have begun to provide coffee; cheap coffee is gradually being replaced by better solutions provided by better brands.
**Expanding the Map**
For these two coffee giants, the alliance provides "huge opportunities" for the development of their respective businesses. As Foodinc has introduced, through the global coffee alliance, Nestlé has obtained the permanent right to sell Starbucks retail and foodservice products (excluding ready-to-drink products) outside Starbucks coffee shops worldwide.
**On the one hand, Starbucks has unlocked more consumption scenarios it has never entered before, expanding its business territory and brand influence.**
"We have always been committed to innovating the Starbucks experience for Chinese customers, and now, the alliance with Nestlé means we will unlock premium coffee experiences for Chinese customers outside Starbucks stores, better meeting their daily needs," said Belinda Wong. Starbucks will "greatly accelerate the expansion" of its global influence in packaged consumer goods and foodservice.
**Qureshi told Foodinc that Nestlé has been operating its coffee business in China for over 30 years and possesses "professional knowledge and technical strength, highly developed distribution channels, and rapid market responsiveness" in the coffee field.**
So, what role will Starbucks play in this cooperation business in the future?
**"Under this alliance, we have a global team dedicated to product development and cooperation between the two sides. This allows us to fully leverage our global R&D and innovation team to provide us with more experience and reference," Belinda Wong told Foodinc.**
**She revealed that the new products launched this time are "the best-selling beverages in Starbucks stores."** According to the introduction, the series includes Starbucks' iconic blends and single-origin coffees, as well as classic Starbucks beverages such as Caramel Macchiato and Cappuccino. All products are made with Arabica coffee beans.
**"This is just the beginning," Belinda Wong told Foodinc. Coffee is still in an early development stage in China, with huge potential and steady growth. "We will continue to innovate and expand coverage, bringing the Starbucks coffee experience to more Chinese consumers based on Nestlé's home coffee products and services."**
**Increasing Premium**
**On the other hand, this will bring Nestlé many new consumers who enjoy the Starbucks coffee experience, strengthening its position in the premium coffee market.**
**In a statement today, Nestlé pointed out that over the past 20 years, Starbucks has successfully built a "premium brand image, high-quality coffee, and iconic flavors" in China. The new products from the cooperation will continue the premium experience that the Starbucks brand brings to consumers.**
"China is the second-largest market for both Nestlé and Starbucks globally. Nestlé has been in the Chinese market for 30 years, and Starbucks has been in China for 20 years. Both brands have a solid business foundation in China," Qureshi told Foodinc. The Starbucks products entering Nespresso and Dolce Gusto are both "relatively mature platforms" under Nestlé.
"We hope to increase investment in high-growth categories such as coffee, and coffee is growing rapidly both globally and in the Chinese market. We hope to expand coffee culture in China, a country with a strong tea culture," Qureshi said. "Overall, we see great opportunities and potential in this market."
Source: Foodinc (ID: foodinc)


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