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Starbucks to Begin Offering K-Cups in November

By Market News Video Staff, Tuesday, August 30, 9:24 AM ET
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Starbucks (NASDAQ:SBUX) said today it will begin offering its coffee in single-cup brewing K-Cups for Keurig coffee makers in November.

The Keurig Single Cup Brewing system is produced by Green Mountain Coffee Roasters (NASDAQ:GMCR), with which Starbucks said it is the “exclusive licensed super-premium coffee brand,” it said.

The head of Starbucks’ global consumer products business, Jeff Hansberry, said the company plans to build its systemwide sales of K-Cups into a $1 billion business over time.

The company noted the K-Cup Portion Packs will launch in food, drug, mass, club, specialty and department store retailers in the U.S. just in time for the holidays. They will be available in Canada as well as on Starbucks and Green Mountain’s websites early next year.

The K-Cups will be sold in Starbucks retail stores later in 2012.

In its announcement, Starbucks noted that single-cup coffee sales drove coffee category growth last year in the U.S., with sales of nearly $2 billion.

Bloomberg first reported the news based on an interview, prior to Starbucks’ announcement. Hansberry told Bloomberg that retailers like Wal-Mart (NYSE:WMT) and Target (NYSE:TGT) would sell the Starbucks K-Cups.

Dunkin Brands (NASDAQ:DNKN) already sells its own version of the K-Cups at its Dunkin Donuts stores, Bloomberg noted.


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