Environmental Leader/Alyssa Danigelis: Starbucks and Nestlé Commit To Sustainable Sourcing in $7.15B Coffee Deal

Environmental Leader

News and Best Practices for
Commercial & Industrial Environmental Professionals
Skip to content
Menu

Starbucks and Nestlé Commit To Sustainable Sourcing in $7.15B Coffee Deal
May 10, 2018 by Alyssa Danigelis
sustainable coffee sourcing
(Photo Credit: Starbucks)

Starbucks and Nestlé announced a global alliance this week where the Swiss food and beverage company will pay $7.15 billion to market, sell, and distribute Starbucks products. The companies say that the deal is aimed at making coffee the world’s first truly sustainable agricultural product.

Under the terms of the agreement, Nestlé will obtain the rights to market, sell, and distribute Starbucks, Seattle’s Best Coffee, Starbucks Reserve, Teavana, Starbucks VIA and Torrefazione Italia packaged coffee and tea in all global at-home and away-from-home channels.

“Both companies have true passion for outstanding coffee and are proud to be recognized as global leaders for their responsible and sustainable coffee sourcing,” Nestlé CEO Mark Schneider said.

For its part, Starbucks says the company is committed to buying 100% ethically sourced coffee in partnership with Conservation International. They are also a founding member of the Sustainable Coffee Challenge, a collaborative effort to stimulate greater demand for sustainable coffee that launched during the 2015 Paris climate meetings.

The Challenge says that their vision will be achieved when all coffee is produced meeting sustainable practices that will:

    Ensure coffee contributes to improved income and profitability for the 25 million coffee producers, workers, and their families
    Implement sustainable agricultural practices to triple productivity on existing 10 million hectares of coffee to sustain supply and enable the sector to meet rising consumption and the growing demand for coffee in a socially and environmentally responsible way
    Prevent the clearing of one additional hectare of high conservation-value forest or depleting other natural resources for enhanced coffee production

Prior to announcing the new alliance, both Starbucks and Nestlé made efforts to improve the sustainability of their product packaging. Nestlé is aiming for 100% recyclable or reusable packaging by 2025 while Starbucks invested $10 million in a new consortium to develop fully recyclable and compostable cups.

“The alliance, which amounts to a licensing arrangement, frees Seattle-based Starbucks to focus on improving its mainstay US cafe business, where traffic growth has stalled amid competition from fast-food chains and upscale coffee houses, while rapidly adding shops in China,” Reuters reported. “The agreement will strengthen Nestlé’s position in the United States, where ranks fifth with less than 5% of the market.”

The agreement excludes ready-to-drink coffee, tea and juice products and will be subject to customary regulatory approval. The two companies say the agreement is likely to close this summer or early fall.
Getting It Done: Mentioned in This Article…

Starbucks

Nestlé

The 3rd Annual Environmental Leader & Energy Manager Conference takes place May 15 – 17, 2018 in Denver. Learn more here.
Categories Environmental Management, Feature, Supply ChainTags agriculture, coffee, farming, food and beverage, Nestle, Starbucks, sustainable sourcing
Embrace Big Data
Sponsored By: UL EHS Sustainability

 
Real-Time Data as a Foundation to Drive Sustainability Performance
Sponsored By: Sphera Solutions

 
Choosing the Correct Emission Control Technology
Sponsored By: Anguil Environmental Systems

 
NAEM 2017 EHS&S Software Buyers Guide
Sponsored By: VelocityEHS

 
Leave a Comment

NEWSLETTER
NEWSLETTER SIGNUP

Join 100,000+ subscribers who gain a competitive advantage with our news and analysis.
Select the newsletters that interest you: Environmental Leader Newsletter (Mon, Wed, Fri) Energy Manager Today Newsletter (Mon, Wed, Fri)
VelocityEHS - Click Here.
Environmental Leader & Energy Manager Conference 2018 - Click Here.
Environmental Leader & Energy Manager Conference 2018 - Click Here.
Corner Office

    image
    Assessing the ROI for EH&S Software

Insights, Articles, Research and More...

Leaders Leading

    image
    How recycling habits can influence the industry

Webinars

    image
    Clean Air Act Policy Change: How the End...
    On Demand Webinars

Sponsored By Gensuite
Sponsored By Environmental Leader
FEATURED SUPPLIERS
Covanta Environmental Solutions
VelocityEHS
Environmental Leader
Schneider Electric Energy & Sustainability
Digital Lumens
Anguil Environmental Systems
Sphera Solutions
UL EHS Sustainability
View All Suppliers >
White Papers
Oxygen Sensor Types
Sponsored By:
Alpha Omega Instruments
Four Critical Factors for Selecting the Right ECSQ Software
Sponsored By:
Cority Software
Emerging Technologies in Learning
Sponsored By:
UL EHS Sustainability
Embrace Big Data
Sponsored By:
UL EHS Sustainability
Six Steps to Navigating EHS Compliance
Sponsored By:
UL EHS Sustainability
Environmental Leader Product and Project Awards 2016
Sponsored By:
Environmental Leader
Environmental Leader Product and Project Awards 2017
Sponsored By:
Environmental Leader
EHS Special Report
Sponsored By:
Environmental Leader
Zero Waste To Landfill
Sponsored By:
Covanta Environmental Solutions
Waste and Climate Reducing Your Footprint
Sponsored By:
Covanta Environmental Solutions
View All White Papers >
UPCOMING WEBINARS
ON DEMAND WEBINARS

    Clean Air Act Policy Change: How the End of the ‘Once In, Always In’ Policy Could Impact Major Source Emitters
    Strategic Waste Mgmt. planning under the EPA’S new regulations
    A New Era for CERCLA? A Review of the Superfund Task Force’s Recommendations
    The Future of Environmental Performance: Innovations, Strategies and Business Cases Across Industries
    Environmental Metrics: A New Way to Drive Enterprise Value

See More Webinars >

FOLLOW US social-footer-twittersocial-footer-linkedinsocial-footer-facebooksocial-footer-googlesocial-footer-youtubesocial-footer-rss
PRIVACY POLICY | ABOUT US | SEND A STORY | ADVERTISE
© Copyright 2018 Environmental Leader ® is a registered trademark of Business Sector Media LLC.
Translate »