Starbucks Coffee Partners with Green Mountain

Starbucks Corp. (SBUX - Analyst Report) entered into a deal with Keurig brewer parent Green Mountain Coffee Roasters Inc. (GMCR - Analyst Report). As per the deal, Starbucks will distribute its coffee and Tazo tea in Keurig’s K-Cup portion packs. The K-Cup portion packs will be available at supermarkets, wholesale clubs, drug stores and departmental stores throughout the U.S. and Canada.

The pact further boosts Starbucks goal of expanding its single-cup coffee product line. It will become the exclusive, licensed super-premium coffee brand for the Vermont-based Green Mountain Coffee Roasters’ Keurig single-cup coffee system. For the already existing owners of Keurig Single-Cup brewer, the new relationship will provide an additional choice for Starbucks branded super-premium coffees.

And Green Mountain also did a deal with Dunkin' Donuts:
Green Mountain Coffee Roasters Inc. Tuesday agreed to sell Dunkin' Donuts coffee in its proprietary single-cup servings, the latest move in an increasingly competitive market for individual coffee portions.

Beginning this summer, Green Mountain said Dunkin' Donuts will sell packs of 14 single-serve K-Cup servings at its coffee shops for use with Green Mountain's Keurig single-cup brewers. Financial terms of the deal weren't disclosed.

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