Starbucks, Green Mountain Coffee Brew Up Single-Cup Partnership

The new five-year agreement is being dubbed a game changer for the global single-serve coffee industry.

May 13, 2013

SEATTLE & WATERBURY, Va. – Starbucks and Green Mountain Coffee Roasters have signed a new five-year agreement that expands their current partnership for the manufacturing, marketing, distribution and sale of Starbucks- and Tazo-branded single serve packs for use in GMCR's Keurig single serve brewing systems globally.

Starbucks and GMCR first entered into partnership in March 2011. Following a successful product launch, Starbucks has shipped more than 850 million Starbucks coffee K-Cup packs.

The new agreement is “a global single-serve coffee industry game changer,” according to a press release. Under the new agreement, Starbucks will add brands and varietals to the Starbucks K-Cup and Vue pack portfolio of offerings for Keurig single cup brewers, ultimately tripling the number of Starbucks products and adding brands offered on the Keurig platform. New brands will include Seattle's Best Coffee, Torrefazione Italia coffee, Teavana Teas and Starbucks Cocoa.

"Starbucks new agreement with GMCR strengthens our leadership position in the premium single cup category, the segment of our industry that has grown nine times faster than the overall coffee category during the past year and a category that now accounts for more than 25% of total coffee sales in grocery," said Howard Schultz, Starbucks chairman, president and CEO.

With expanded availability and distribution, sales of Starbucks coffee K-Cup packs increased more than 75% in March 2013 over the previous year. In April, Starbucks coffee K-Cup packs were named one of the top 10 launches of 2012, according to Information Resources Inc.

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