Nestle Latching On to Starbucks Keeps JAB at Bay, Analysts Say

Nestle SA’s $7.2 billion latch-on to Starbucks Corp.’s empire is a positive move for the Swiss maker of Nescafe, which needs to defend itself from increasing competition in the coffee market and bolster U.S. sales of the brown beverage, analysts said.

Nestle plans to use the Starbucks brand in its Nespresso and Dolce Gusto capsule systems, starting next year, after inking rights to sell Starbucks coffee products in supermarkets, restaurants and catering operations. Its shares were up 0.7 percent as of 11 a.m. in Zurich.