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Nestle Pays Starbucks $7.1bn to Sell its Coffee

Nestle in $7.1bn Starbucks coffee deal

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Nestle Pays Starbucks $7.1bn to Sell its Coffee.
Nestle Paid Starbucks $7.1bn to Sell its Coffee. Pixabay

Food giant Nestle on Monday announced a $7.1 billion deal with Starbucks for the rights to sell the chains coffee, tea and food products in grocery stores and other outlets globally.

The Swiss consumer goods giant said 500 Starbucks employees would transfer over to its business but they would continue to be located in Seattle, the group’s headquarters for the last 47 years.

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Starbucks coffee. Pixabay

The Nescafe and Nespresso owner would own the rights to market Starbucks’ coffee, which it says generates $2 billion in annual sales, the BBC reported.

Nestle chief executive Mark Schneider, who in 2016 became the first outsider to run Nestle in almost 100 years and who is attempting to boost the company’s profit through expansion, described it as a “significant step”.

Also Read: Californian Court Warns “Coffee causes Cancer!”

The company last sold its US sweets and chocolate business, including brands such as Crunch and Butterfinger, to Ferrero Group for 2.7 billion Swiss francs.

Schneider described the “global coffee alliance” with Starbucks as “a great day for coffee lovers around the world”. (IANS)

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Coffee Does Not Pose ‘Significant’ Cancer Risk, Says California

It was the first time the state has declared such a brew of chemicals safe despite the presence of carcinogens

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A patron holds an iced beverage at a Starbucks coffee store in Pasadena, Calif., July 25, 2013. VOA

California officially gave its blessing to coffee Monday, declaring the beverage does not pose a “significant” cancer risk. The rule, proposed a year ago by regulators, means coffee won’t have to carry ominous warnings that the beverage may be bad for you.

The state took the rare move after a Los Angeles judge found Starbucks Corp. and other companies failed to show that benefits from drinking coffee outweighed risks from a byproduct of the roasting process.

That ruling put the industry in jeopardy of hefty civil penalties and in the position of either developing a process to remove the chemical or warning consumers about the risk of cancer. The chemical in question, acrylamide, is on a list that California says causes cancer, though other groups classify it as a “probable” carcinogen.

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“With this news, coffee drinkers around the world can wake up and enjoy the smell and taste of their coffee without hesitation.” Pixabay

Under a law passed more than three decades ago by California voters, products that contain chemicals that cause cancer or birth defects must warn consumers about those risks.

The Office of Environmental Health Hazard Assessment, which implements the law, concluded there was no significant risk after a World Health Organization review of more than 1,000 studies and found inadequate evidence that coffee causes cancer. Further, it concluded coffee reduces the risk of some types of cancer.

“Coffee is a complex mixture of hundreds of chemicals that includes both carcinogens and anti-carcinogens,” said Sam Delson, a spokesman for the agency. “The overall effect of coffee consumption is not associated with any significant cancer risk.”

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It was the first time the state has declared such a brew of chemicals safe despite the presence of carcinogens, Delson said. Pixabay

It was the first time the state has declared such a brew of chemicals safe despite the presence of carcinogens, Delson said. The coffee industry cheered the rule. “This is a great day for science and coffee lovers,” said William Murray, president and chief executive of the National Coffee Association USA. “With this news, coffee drinkers around the world can wake up and enjoy the smell and taste of their coffee without hesitation.”

ALSO READ: Drinking Even 25 Cups of Coffee in a Day Not Bad for Heart, Says Study

The Council for Education and Research on Toxics, which successfully sued the coffee industry in a case that has dragged on more than eight years in Los Angeles Superior Court, will challenge the validity of the state’s regulation in court, said attorney Raphael Metzger.

Metzger, who represents the small nonprofit in its lawsuit against Starbucks and about 90 coffee companies, said the regulation was adopted in violation of state law and disregards the statutes the agency is supposed to implement. He said the regulation can’t be applied retroactively to nullify the judge’s ruling. (VOA)