Food giant Nestle and U.S. coffee chain Starbucks are extending their partnership to launch ready-to-drink coffee beverages in markets across Southeast Asia, Oceania and Latin America, the two partners said. Nestle and Starbucks signed a global licensing deal in 2018 that granted Nestle the perpetual rights to market Starbucks packaged coffee and food service products globally. The initial agreement excluded goods sold in Starbucks coffee shops and ready-to-drink products.
Nespresso, the premium coffee division controlled by Nestle SA, has not increased prices for its capsules yet despite a sharp increase in benchmark prices for arabica beans, opting to wait and see if the upward trend is sustainable over time. Alfonso Gonzales Loeschen, the Chief Executive of Nespresso North America, said in an interview on Wednesday the company has so far absorbed price increases instead of passing on the higher costs to consumers, until there is more clarity about the market direction. "It will all depend on how long these higher prices will be maintained," Loeschen said.
The U.S. Supreme Court on Thursday threw out a lawsuit accusing Cargill Inc and a Nestle SA subsidiary of knowingly helping perpetuate slavery at Ivory Coast cocoa farms, but sidestepped a broader ruling on the permissibility of suits accusing American companies of human rights violations abroad. The 8-1 ruling authored by Justice Clarence Thomas reversed a lower court decision that had allowed the lawsuit, brought on behalf of former child slaves from Mali who worked at the farms, filed against the companies in 2005 to proceed. The court ruled the claim could not be brought under the Alien Tort Statute, which lets non-U.S. citizens seek damages in American courts in certain instances, because the plaintiffs did not show that any of the relevant conduct took place within the United States.