Coffee retailer Starbucks Coffee Co. (SBUX) and Green Mountain Coffee Roasters Inc. (GMCR), a leader in specialty coffee and coffeemakers, Wednesday announced an expansion of their partnership for the manufacturing, distribution, and sale of Starbucks- and Tazo-branded single serve packs for use in Green Mountain's Keurig single serve brewing systems globally. Financial terms of the agreement were not disclosed.
Starbucks and Green Mountain first entered into partnership in March 2011. Following a strong product launch, Starbucks has shipped more than 850 million Starbucks coffee K-Cup packs.
"Today's announcement recognizes the tremendous success of the Starbucks and Green Mountain's strategic relationship, and both companies' desire to broaden, deepen and significantly extend their partnership," the companies said.
As per the new, minimum five-year agreement announced today, 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.
The new agreement reinforces Starbucks position as the exclusive licensed super premium coffee brand on the Keurig K-Cup and Vue platforms, and further extends the Keurig system's position as the exclusive low-pressure single cup brewing system for fresh-brewed Starbucks coffee, Tazo tea and the aforementioned Starbucks brands.
Sales of Starbucks coffee K-Cup packs increased more than 75 percent in March 2013 over the previous year.
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