Nestle to pay Starbucks $7.15 bn for rights to sell its products worldwide

While Starbucks holds the crown in the $13.8 billion US coffee market, Nescafe and Nespresso hold the top ranks globally, according to Euromonitor

Starbucks coffee shop

Nestle SA and Starbucks Corp. are joining forces to rejuvenate their coffee empires.

Nestle will pay the Seattle-based chain $7.15 billion upfront in cash for the rights to sell Starbucks coffee products in retail and food-service channels, the companies said Monday. Nestle will use the Starbucks brand in its Nespresso and Dolce Gusto capsule systems next year.

The deal is Nestle’s first tie-up with a major rival in coffee. Nestle expects the deal to contribute positively to its earnings per share and organic growth targets from 2019. The business has annual sales of $2 billion. Starbucks said it will use the proceeds to accelerate share buybacks, now expecting to return about $20 billion through repurchases and dividends through fiscal 2020.

The alliance underlines Nestle’s efforts to capture more upscale java drinkers in the US, where the maker of Nespresso and Nescafe has been outpaced by JAB Holding Co. The investment company of Europe’s billionaire Reimann family has spent more than $30 billion building a coffee empire by acquiring assets such as Keurig Green Mountain and Peet’s.

“The deal with Starbucks allows Nestle to keep JAB at a distance,” Jean-Philippe Bertschy, an analyst at Bank Vontobel AG, wrote in a note. “It allows Nestle to gain scale in the US, a weak spot so far.”

Starbucks said Nestle will also obtain the rights to sell packaged coffee products under brands including Seattle’s Best Coffee, Starbucks VIA and Torrefazione Italia. The deal also the includes Teavana tea brand, though it excludes ready-to-drink products and all sales within Starbucks coffee shops.

Click Here To Know More : Nestle Starbucks Deal

Advertisements

Google’s new spending binge shows Alphabet Inc running after biggest rivals

The company also spent at historic levels, nearly tripling capital expenditure for the quarter to $7.7 billion

1520701469-4141

Alphabet Inc.’s first-quarter results came with a clear message to Wall Street: The company is embarking on a new spending binge to chase its biggest rivals.

Google’s parent posted the strongest sales growth in almost four years on Monday, indicating marketers kept flocking to its services amid rising scrutiny of digital ads. But the company also spent at historic levels, nearly tripling capital expenditure for the quarter to $7.7 billion.

Almost all of that spending went to buttress newer cloud and consumer-device businesses that lag behind leaders Online Shopping for Electronics, Apparel, Computers, Books, DVDs & more Inc. and Apple Inc. After neglecting these markets for years in favour of its main ad businesses and riskier moonshot bets, Alphabet is now splurging to catch up.

“The big story from the results was the significant rise in expenses,” Brian Wieser, an analyst at Pivotal Research Group, wrote in a note to investors.

Other tech giants are spending prodigiously, too, as they hunt for new markets. In the fourth quarter, Amazon’s capex rose 50 percent and Facebook Inc.’s spending nearly doubled.

Alphabet’s rising first-quarter investments partly reflected a $2.4 billion real-estate deal. But even without that, capex more than doubled from a year earlier. Chief Financial Officer Ruth Porat cautioned investors to expect more of the same. “I wouldn’t suggest a one-off in terms of the investment we’re making,” she said. “We’re really building out to support the growth that we’re seeing.”

Porat ticked off the items that are opening her wallet: data centres; three new undersea cables; processors, networking equipment and other machinery to power Google’s sprawling artificial intelligence efforts.

Chief Executive Officer Sundar Pichai told investors that Google’s nascent hardware unit, which builds smartphones and speakers rivalling Amazon and Apple, is two to three years from “the scale that we want to see.” The investment required for this includes custom chips designed in-house, an expensive skill that Apple has been developing for years. Click Here

Prince Alwaleed’s arrest: How future Saudi king is tightening grip on power

Analysts said the purge aimed to go beyond corruption and aimed to remove potential opposition to Prince Mohammed’s ambitious reform agenda

1509916148-1396

Saudi Arabia’s future king has tightened his grip on power through an anti-corruption purge by arresting royals, ministers and investors including billionaire Alwaleed bin Talal who is one of the kingdom’s most prominent businessmen.

Saudi Prince Arrest Alwaleed, a nephew of the king and owner of investment firm Kingdom Holding, invests in firms such as Citigroup and Twitter. He was among 11 princes, four ministers and tens of former ministers detained, three senior officials told Reuters on Sunday.

The purge against the kingdom’s political and business elite also targeted the head of the National Guard Prince Miteb bin Abdullah, who was detained and replaced as minister of the powerful National Guard by Prince Khaled bin Ayyaf.

The allegations against Prince Alwaleed include money laundering, bribery and extorting officials, one official told Reuters, while Prince Miteb is accused of embezzlement, hiring ghost employees and awarding contracts to his own companies including a $10 billion deal for walkie-talkies and bulletproof military gear worth billions of Saudi riyals.

News of the purge came soon after King Salman decreed late on Saturday the creation of an anti-corruption committee chaired by Crown Prince Mohammed bin Salman, his 32-year-old favourite son who has amassed power since rising from obscurity three years ago. Read More

Good news for IT cos! US resumes premium processing of H-1B visa categories

H-1B visa is a non-immigrant visa that allows US companies to employ foreign workers in speciality occupations that require theoretical or technical expertise

1481623264-8608

The US has resumed premium processing of H-1B work visas in all categories, months after it was suspended temporarily to handle the huge rush of applications for the work visas popular among Indian IT professionals.

Premium processing of H-1B visa was suspended in April to handle huge rush of new petitions. In September, the country opened up some categories of the H-1B visas for the fast processing.

“Premium processing is now available for all types of H- 1B petitions,” US Citizenship and Immigration Services (USCIS) said yesterday.

Also Read : New Rs 100 notes coming next year, printing to begin in April

The H-1B visa is a non-immigrant visa that allows US companies to employ foreign workers in speciality occupations that require theoretical or technical expertise. The technology companies depend on it to hire tens of thousands of employees each year.

As mandated by the Congress every year USCIS can issues a maximum of 65,000 H-1B visas and 20,000 to those who have earned higher education in STEM subjects from a US higher educational institution.

H-1B visas to several categories like those in academic and research institutes is exempted from the Congressional mandated limit.

When a petitioner requests the agency’s premium processing service, USCIS guarantees a 15-calendar day processing time. Read More

Over 18 guns, explosives found at house of Las Vegas gunman who killed 59

The arsenal uncovered in Mesquite comes on top of at least 16 firearms discovered in the Vegas hotel room

1506980022-7635

Authorities have said they had recovered a weapons cache including firearms, explosives, and ammunition from a house owned by Las Vegas gunman Stephen Paddock, as they upped the death toll from the attack to 59.

Sheriff Joseph Lombardo said officers searching the house in Mesquite, Nevada recovered “in excess of 18 additional firearms, some explosives and several thousand rounds of ammo, along with some electronic devices we’re evaluating at this point.”

Lombardo said the death toll from the Sunday night assault on an open-air concert on the Vegas Strip had risen to 59, while 527 people had been injured.

ALSO READ: At least 58 dead, more than 500 hurt in Las Vegas shooting; gunman killed

He said law enforcement were working four separate crime scenes: Paddock’s room at the Mandalay Bay hotel, the concert venue, the gunman’s house in Mesquite, and another house he owns in northern Nevada which a SWAT team was poised to raid.

The arsenal uncovered in Mesquite comes on top of at least 16 firearms discovered in the Vegas hotel room, from which Paddock launched the deadly assault before killing himself. Read Full Story >>>

Modi in Israel: PM gifts two sets of relics from Kerala to Netanyahu

The relics include sets of copper plates that are believed to have been inscribed in 9-10th century

1499240909-5919

Current Affairs : Prime Minister Narendra Modi has gifted his Israeli counterpart Benjamin Netanyahu replicas of two sets of relics from Kerala, regarded as key artefacts of the long Jewish history in India.

Modi, who arrived in Tel Aviv, Israel on July 6 for a three-day visit, presented the relics to Netanyahu at his home.

They comprise two different sets of copper plates that are believed to have been inscribed in 9-10th Century, the Prime Minister’s Office said.

The first set of copper plates is a cherished relic for the Cochin Jews in India. It is regarded as a charter describing the grant of hereditary royal privileges and prerogatives by the Hindu King, Cheraman Perumal (often identified as Bhaskara Ravi Varma) to the Jewish leader Joseph Rabban. Read Full Story

ICC Champions Trophy: Pakistan army mocks India after victory

Pakistan won the Champions Trophy cricket final on Sunday by defeating India by 180 runs

1497861376-2181

Current Affairs : Pakistan Army has mocked India after the country’s resounding victory in the Champions Trophy cricket final, sharing photos of celebrations in restive Balochistan with a caption “To whom it may concern’. Lay off”.

After posting photos of Army chief General Qamar Javed Bajwa with victory sign and soldiers dancing over Pakistani triumph over India at the Oval, military spokesman Major General Asif Ghafoor shared pictures from Balochistan where people were celebrating the victory.

“And this is Our Balochistan. ‘To whom it may concern’. Lay off,” he wrote along with photos.

The pictures were apparently in response to Prime Minister Narendra Modi’s Independence Day speech last year in which he had raised the issue Pakistan’s atrocities on people of Baluchistan and Pakistan-occupied Kashmir.

Ghafoor also posted a video showing people in Srinagar purportedly celebrating Pakistan’s victory over India.

“And this is………Srinagar!!” he wrote.

In another tweet, he said, “Valiant soldiers of Pakistan congrat Team Pak & Nation. United we shall defend Pak against all threats our enemies hatch.”

Pakistan won the Champions Trophy cricket final on Sunday by defeating India by 180 runs.