Nestlé will pay Starbucks $US7.15 billion (AU$9.5 billion) for the rights to sell its coffee beans directly to consumers through supermarkets and other food shops around the world.
Nestlé, which owns Nescafe and Nespresso, has said the sale would boost its market position in North America while giving it opportunities to sell premium range coffee to consumers overseas.
The Starbucks business covered by the deal currently generates around $US2 billion in annual sales and includes coffee beans and ground coffee that Nestlé will be selling outside of Starbucks' coffee shops.
For Starbucks, the deal will increase its global presence as the company's coffee beans and grounded blends will be sold through Nestlé's channels in food retail, such as supermarkets and corner shops.
Nestlé has already made some acquisitions in the coffee sector, including buying a stake in California's Blue Bottle Coffee in September.
