Market Overview

Nestlé and Starbucks Close Deal for the Perpetual Global License of Starbucks Consumer Packaged Goods and Foodservice Products


Nestlé and Starbucks Corporation today announced the closing of
the deal granting Nestlé the perpetual rights to market Starbucks
Consumer Packaged Goods and Foodservice products globally, outside of
the company's coffee shops.

Through the alliance, the two companies will work closely together on
the existing Starbucks range of roast and ground coffee, whole beans as
well as instant and portioned coffee. The alliance will also capitalize
on the experience and capabilities of both companies to work on
innovation with the goal of enhancing its product offerings for coffee
lovers globally.

"This partnership demonstrates our growth agenda in action, giving
Nestlé an unparalleled position in the coffee business with a full suite
of innovative brands. With Starbucks, Nescafé and Nespresso
we bring together the world's most iconic coffee brands," said Mark
Schneider, Nestlé CEO. "The outstanding collaboration between the two
teams resulted in a swift completion of this agreement, which will pave
the way to capture further growth opportunities," he added.

The agreement significantly strengthens Nestlé's coffee portfolio in the
North American premium roast and ground and portioned coffee business.
It also unlocks global expansion in grocery and foodservice for the
Starbucks brand, utilizing the global reach of Nestlé.

"This global coffee alliance with Nestlé is a significant strategic
milestone for the growth of Starbucks," said Kevin Johnson, president
and ceo of Starbucks. "Bringing together the world's leading coffee
retailer, the world's largest food and beverage company, and the world's
largest and fast-growing installed base of at-home and single-serve
coffee machines helps us amplify the Starbucks brand around the world
while delivering long-term value creation for our shareholders."

Approximately 500 Starbucks employees in the United States and Europe
will join the Nestlé family, with the majority based in Seattle and
London. The international expansion of the business will be led from
Nestlé's global headquarters in Vevey, Switzerland.

The agreement covers Starbucks packaged coffee and tea brands, such as
Starbucks®, Seattle's Best Coffee®, TeavanaTM/MC, Starbucks
VIA® Instant, Torrefazione Italia® coffee and Starbucks-branded K-Cup®
pods. It excludes Ready-to-Drink products and all sales of any products
within Starbucks® coffee shops.

Forward-Looking Statements

Certain statements contained herein are "forward-looking" statements
within the meaning of the applicable securities laws and regulations.
Generally, these statements can be identified by the use of words such
as "anticipate," "expect," "believe," "could," "estimate," "feel,"
"forecast," "intend," "may," "plan," "potential," "project," "should,"
"will," "would," and similar expressions intended to identify
forward-looking statements, although not all forward-looking statements
contain these identifying words. These statements are based on
information available to Starbucks as of the date hereof, and Starbucks
actual results or performance could differ materially from those stated
or implied, due to risks and uncertainties associated with its business.
These risks and uncertainties include, but are not limited to,
fluctuations in the U.S. and international economies and currencies, our
ability to preserve, grow and leverage our brands, potential negative
effects of incidents involving food or beverage-borne illnesses,
tampering, adulteration, contamination or mislabeling, potential
negative effects of material breaches of our information technology
systems to the extent we experience a material breach, material failures
of our information technology systems, costs associated with, and the
successful execution of, the company's initiatives and plans, the
acceptance of the company's products by our customers, the impact of
competition, as well as general economic and industry factors such as
coffee, dairy and other raw materials pricing and availability,
successful execution of internal performance and expansion plans,
fluctuations in U.S. and other international economies and currencies,
the impact of initiatives by competitors, the effect of legal
proceedings, and other risks detailed in the Company's filings with the
Securities and Exchange Commission, including the "Risk Factors" section
of the Company's Annual Report on Form 10-K for the fiscal year ended
October 1, 2017. The Company assumes no obligation to update any of
these forward-looking statements.

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