What Is the Nestlé-Authorized Starbucks Coffee Service?

Stores imitating Starbucks have appeared on Chinese streets, copying the decor, the green mermaid logo, menu, and pricing, but signing as STARPER COFFEE. Some netizens assumed they were part of the Nestlé-authorized Starbucks coffee service. Nestlé has officially denied any contractual relationship with the stores involved and referred the matter to its legal department.

In 2018 Nestlé acquired Starbucks' retail coffee business for $7.15 billion and gained permanent global marketing rights outside Starbucks stores. The genuine Starbucks coffee service operates as franchised outlets that may only display the words Starbucks Coffee Service, with equipment and ingredients supplied and inspected by Nestlé. The menu there is limited to tall, classic-style drinks.

As Starbucks continues to expand into third- and fourth-tier cities, some stores imitating Starbucks have begun appearing on the streets. These "knockoff Starbucks" not only resemble the original in decor style, but also use Starbucks' green mermaid logo, and their menus and prices are copied from the original, yet the sign reads "STARPER COFFEE." Some netizens speculated that this was a Nestlé-authorized Starbucks coffee service, but Nestlé has officially denied this and stated that it has referred the matter to its legal department. So where exactly do these stores come from? What restrictions apply to the Nestlé-authorized Starbucks coffee service? This article sorts out the ins and outs of the incident and retains related recommendations from Front Street Coffee.

In recent years, Starbucks has been continuously expanding into third- and fourth-tier cities, and many coffee industry professionals returning to their hometowns have also found that their "small places" have welcomed their first Starbucks.

However, recently, netizens have been posting photos on social media of "knockoff" Starbucks stores near them. Because the appearance is so highly similar, people momentarily find it hard to tell whether Starbucks changed its sign or whether they had encountered a "fake store."

From observation, these "high-imitation Starbucks" not only have an overall style close to the genuine stores, but also display Starbucks' green mermaid logo throughout the interior. The menu categories and pricing also follow Starbucks' approach, with the only difference being the name on the sign (STARPER COFFEE) compared with the original.

Faced with this kind of "knockoff Starbucks," some netizens speculated that it should be the Starbucks coffee service (We Proudly Serve Starbucks), authorized by Nestlé Coffee. In 2018, Nestlé acquired Starbucks' retail coffee business for $7.15 billion and obtained permanent global marketing rights. This means Nestlé can sell packaged products bearing the Starbucks brand through any channel outside Starbucks stores.

The Starbucks coffee service belongs to franchised stores. Service stores may only use the words "Starbucks Coffee Service." In-store equipment and ingredients are all provided by Nestlé officially and managed systematically, and Starbucks conducts regular inspections. The menu is only allowed to offer tall and classic-style 9 coffee items (Frappuccino may not be sold), the Starbucks Rewards card cannot be used, peripheral products such as cups may not be sold, and they may not be listed on delivery platforms.

In addition, Starbucks coffee service stores can only be opened in enclosed locations, such as hotels, libraries, office buildings, airport waiting halls, private hospitals, and other leisure areas with catering licenses. However, the locations of these "high-imitation Starbucks" discovered by netizens are very "showy" and clearly belong to street-front shops. Not only that, in these "STARPER" stores, Frappuccino is even renamed "星冰冰" for sale.

In response, many netizens believe that if it were a Nestlé-authorized Starbucks coffee service, the name should not have been rewritten like this. Therefore, this is not a Nestlé franchise store at all, but a "pure knockoff Starbucks."

Based on the store sign (STARPER COFFEE), some netizens found that the registrant of the trademark (STARPER) is a fast-franchising company in Shanghai called "Katar Supply Chain," which is not under Starbucks and is not managed by Nestlé. Upon verification, the trademark application date was early June of this year, and it is currently pending review.

Regarding whether it is connected to Starbucks and Nestlé, some netizens contacted Nestlé Greater China customer service by email and received a reply. Nestlé officially stated that Katar Supply Chain (Shanghai) Co., Ltd. has no contractual relationship with Nestlé (including authorized distributors). Regarding the company's trademark infringement, it has been transferred to Starbucks China's intellectual property team, and that team has also sought help from government departments to crack down on this trademark infringement.

In addition to the above openly "signboard" operating "high-imitation Starbucks," some netizens also found that they had bought "fake Starbucks" at a certain scenic spot. After contacting the person in charge of Starbucks coffee service, the reply was that it was "indeed a fake store." The other party stated that the store was not a Nestlé-authorized Starbucks coffee service and had been referred to the legal department, and necessary legal measures would be taken after verification. This shows that the phenomenon of impersonating Starbucks coffee service franchises is by no means an isolated case.

Image source: Internet

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