Starbucks with new Distribution Model
The new relationship will provide owners of Keurig Single-Cup brewing machines with the additional choice afforded by having Starbucks branded coffees available for their brewers, and furthers Starbucks stated goals of expanding its presence in single-cup coffee, making its coffees widely available.
Starbucks is the exclusive, licensed premium coffee brand produced by GMCR for the Keurig Single-Cup brewing system. Starbucks and GMCR plan to make Starbucks K-Cup portion packs available through food, drug, mass, club, specialty and department store retailers throughout the U.S. and Canada beginning in the fall of 2011. The companies expect to expand Starbucks K-Cup portion pack and Keurig Single-Cup Brewing system distribution to Starbucks stores and to make Starbucks K-Cup portion packs available through their websites beginning of 2012.
“Today’s announcement is a win for Starbucks, a win for GMCR and most importantly a win for consumers who want to enjoy Starbucks coffee with the Keurig Single-Cup Brewing system,” said Howard Schultz, Starbuck´s CEO. “Our research shows that more than 80 percent of current Starbucks customers in the U.S. do not yet own a single-cup brewer and our relationship will enable Starbucks customers to enjoy perfectly brewed Starbucks® coffee at home, one quality cup at a time.”
Overall coffee category growth in the U.S. last year was driven primarily by single-cup coffee sales of nearly $2 billion*. Starbucks expanded its presence in the category last year through the introduction of Starbucks Via ready brew. The introduction of Starbucks coffee and Tazo tea K-Cup portion packs reflects Starbucks strategy of continuing to grow its presence in single-cup coffee.
Starbuck´s deal comes less than two weeks after the company ended its distribution arrangement with Kraft which sold Starbucks coffee through grocery stores and in single-serve discs for its Tassimo brewing system.
Could this be some inspiration for Nestlé´s Nespresso single cup system? Until today the Swiss are reluctant selling their cups outside of their fully controlled own distribution channels.
Thanks to Consumers Goods Club and Andreas von der Heydt
In : beverages
Tags: starbucks "great mountain coffee roasters" gmcr tazo k-cup keurig
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