Consumer products giant Nestle’s $7.15 billion deal for the rights to sell Starbucks products at its international locations will greatly benefit both massive companies, Nestle CEO Mark Schneider told Cramer in a joint interview with Starbucks chief Kevin Johnson.
“I think this really plays to the strengths of both companies,” Schneider said. “It allows Starbucks to focus on this thriving coffee shop business and international expansion opportunities, and then Starbucks partners with us for what we do best, and that is consumer packaged goods.”
The CEOs told Cramer they were surprised by how well their teams worked together, which has enabled them to expedite the integration process and make the partnership profitable early on. Johnson attributed that in part to the values shared between Starbucks and Nestle, parent to top coffee brands Nespresso and Nescafe.
“Sustainability is one of the three social impact pillars that we have, and, as Mark said, this is something we share in common,” Johnson said. “Embracing the pursuit of doing good is a part of the Starbucks brand, and it’s woven into who we are, into our mission and values, and, candidly, it’s part of why customers want to do business with us.”
Click here to watch their full interview.