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I am intrigued by the following article detailing how Nestle agreed to pay Starbucks $7.2B to distribute and sell Starbucks' packaged coffees and teas around
I am intrigued by the following article detailing how Nestle agreed to pay Starbucks $7.2B to distribute and sell Starbucks' packaged coffees and teas around the world: (https://money.cnn.com/2018/05/07/news/companies/nestle-starbucks-deal-coffee-alliance/index.html). It is intriguing because these two firms are competitors in the coffee space. Why would Nestle purposely put its competitors' brands right next to it in the store, and then pay them for the privilege? Why wouldn't Starbucks just take care of distributing its own brands rather than go through Nestle? Please explain how this outcome could be profit maximizing for both firms using the models taught in class
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