Nestle SA expects to get about a quarter of a billion dollars in extra revenue from Starbucks-branded products this year after it began selling items including Nespresso-compatible capsules under a partnership with the U.S. coffee giant.
Starbucks-branded merchandise will add about 250 million Swiss francs ($252 million) to sales this year. Last year, Nestle paid more than $7 billion for licenses to use the Starbucks brand for products. The alliance could help Nespresso return to annual revenue growth exceeding 10%.
Nestle plans to add 10 more markets next year for the products, including Argentina, Colombia and Panama, which would bring the total to 50. The company will introduce Starbucks-branded soluble coffee next year and expand sales of the broader range to offices and hotels.