Nestlé recent action–takes over starbuck products, page-7

Nestle is basically is going back to what it knows best, coffee. Its a lot easier for them to make a good return on a established business that they can replace Starbucks existing coffee lines with their own. Their going for a safe play that can turn a profit quickly to replace the lost income stream from their 40% market share loss in IF sales in China.

Personally I think after they saw the runaway success of A2 in China they tried to take them at they own game to get a slice of the growing pie but failed to find enough supply to make dent and have moved their attention back to coffee. Good for them and good for us as they will be preoccupied with transforming Starbucks while we continue to grow with new additional supply partners and a experienced incoming CEO, with a proven track record of taking on the big boys and succeeding, who is going to hit the ground running next month eager to show what she is capable of.