The Norwegian coffee market may have a new giant to reckon with after coffee makers Nestlé and Starbucks joined forces.
At the moment, Joh. Johannson coffee and Dutch JDE account for over 85 percent of the Norwegian home coffee market, according to Dagens Næringsliv.
“When the two largest coffee companies in the world penetrate this market, it is dramatic for the national coffee market. The acquisition of the Starbucks’ rights is a good picture of what is happening now. And one should not underestimate internationally-known brands and what position they have in Norway,” said chief Espen Gjerde in Joh. Johannson coffee.
While JDE owns Friele coffee, Joh. Johannson coffee behind brands such as Evergood, Ali and Jacobs.
With the new agreement, Nestlé has secured the right to sell Starbucks coffee in sales channels outside the coffee shops. The global agreement has a value of around 65 billion kroner, according to the newspaper.
“It is very strategically interesting and logical. These are two complementary brands. Both are experts in their fields,” said Vladimir Wendl, head of Nestlé Norway.
© NTB Scanpix / #Norway Today