GMCR, Starbucks Expand Partnership

SEATTLE and WATERBURY, Vt.-Green Mountain Coffee Roasters (GMCR) and Starbucks have reached an agreement that extends their two-year-old partnership for the manufacturing, marketing, distribution and sales of Starbucks- and Tazo-branded single-serve packs, for use in GMCR's Keurig brewers.

Under the terms of the new, minimum five-year agreement, Starbucks will add brands and coffee varietals to the Starbucks K-Cup and Vue pack portfolio for Keurig brewers. A joint statement from the two companies said this ultimately triples the number of Starbucks products under the Keurig platform. Among the additional brands that will be added will be Seattle's Best Coffee, Torrefazione Italia, Teavana Teas and Starbucks Cocoa.

The new agreement reinforces Starbucks' position as the exclusive licensed superpremium coffee brand on the Keurig K-Cup and Vue platforms. It also extends Keurig's position as the exclusive low-pressure, single-cup brewing system for Starbucks coffee, Tazo tea and the other brands mentioned above, the statement added.

Financial terms were not disclosed. GMCR and Starbucks entered into their original partnership in March 2011.

HFN Staff | News & Commentary

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