Why Nestle is spending $7 billion on Starbucks

Nestle, the owner of Nescafe and Nespresso, is paying more than $7 billion for rights to sell Starbucks coffee and tea in grocery stores worldwide, as the Swiss giant looks to jolt its coffee business.

Although Nestle dominates the world's coffee industry, analysts say it has failed to resonate with younger consumers in the U.S. Analysts say the company's…