After seven years of partnership, Starbucks has signed a new strategic licensing agreement with dairy cooperative Arla Foods. Starbucks and Arla Foods have signed 21 years strategic agreement in which Starbucks is giving Arla foods license to manufacture, Distribute and market Starbucks dairy based ready to drink coffee beverages for the EMEA (Europe, Middle East Asia, and Africa) region.
According to Duncan more, Channel development and food services, Starbucks EMEA, relationship with Arla foods in last seven years had witnessed the business growth by an average 40% per annum across the region.
The recent launch of new Starbucks double shot products is a great example of their combined commitment to innovation and to consumers. In 2010, Starbucks gave license to Arla foods for Manufacturing, Distribution, and marketing of their milk-based ready-to-drink coffee beverages across EMEA region.
By 2018, Arla launched 38 Starbucks beverages in 38 countries across EMEA region and sold more than 110 million units per year.