March 10, 2011

Starbucks and Green Mountain to Make Starbucks K-Cup Coffees

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The wait is finally over in the single serve coffee K-Cup world - Starbucks and Green Mountain Coffee Roasters, Inc. today announced a strategic relationship for the manufacturing, marketing, distribution and sale of Starbucks and Tazo tea branded K-Cup portion packs for use in GMCR's Keurig Single-Cup brewing system. The new relationship will provide owners of Keurig Single-Cup Brewers with the additional choice afforded by having Starbucks branded super-premium coffees available for their brewers, and furthers Starbucks stated goals of expanding its presence in premium single-cup coffee, making its premium coffees conveniently available to consumers whenever, wherever and however they want it.

Starbucks is the exclusive, licensed super-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 GMCR's consumer-direct websites: www.greenmountaincoffee.com and www.keurig.com, and Starbucks consumer-direct website: www.starbucks.com beginning in 2012.

We'll let you know as soon as we can get some of these new K-Cups coming out this Fall to review. Congrats to all involved and here's to a Starbucks K-Cup single serve coffee filled future.

Starbucks Corporation and Green Mountain Coffee Roasters, Inc. Enter Into Strategic Manufacturing, Marketing, Distribution and Sales Relationship

Starbucks to be the Exclusive Licensed Super-Premium Coffee Brand Produced by GMCR for the Keurig Single-Cup Brewing System

SEATTLE & WATERBURY, Vt.--(BUSINESS WIRE)--Starbucks Corporation (NASDAQ:SBUX), the world's premier roaster, marketer and retailer of specialty coffees, and Green Mountain Coffee Roasters, Inc. (GMCR) (NASDAQ:GMCR), a leader in specialty coffee and single-serve brewing systems, today announced a strategic relationship for the manufacturing, marketing, distribution and sale of Starbucks® and Tazo® tea branded K-Cup® portion packs for use in GMCR's Keurig® Single-Cup brewing system. The new relationship will provide owners of Keurig Single-Cup Brewers with the additional choice afforded by having Starbucks branded super-premium coffees available for their brewers, and furthers Starbucks stated goals of expanding its presence in premium single-cup coffee, making its premium coffees conveniently available to consumers whenever, wherever and however they want it.

Starbucks is the exclusive, licensed super-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 GMCR's consumer-direct websites: www.greenmountaincoffee.com and www.keurig.com, and Starbucks consumer-direct website: www.starbucks.com beginning in 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, president, ceo and chairman, Starbucks Corporation. "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."

"We are proud to be the exclusive super-premium licensed coffee brand produced by GMCR for the Keurig Single-Cup Brewing system, and are looking forward to working with our colleagues at GMCR to further accelerate growth in single-serve coffee," added Jeff Hansberry, president, Starbucks Global Consumer Products Group.

"This relationship is yet another example of GMCR's strategy of aligning with the strongest coffee brands to support a range of consumer choice and taste profiles in our innovative Keurig Single-Cup Brewing system," said Lawrence J. Blanford, GMCR president and CEO. "Starbucks loyal consumers will soon be able to choose, brew and enjoy their favorite Starbucks coffee in their own homes through the quality, convenience and consistent preparation of the Keurig Single-Cup Brewing system."

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, and enables Starbucks to better and more conveniently serve its global customers wherever they are and however and whenever they want their Starbucks coffee.

GMCR's Keurig Single-Cup brewers for in-home and office use utilize patented, innovative brewing and single-cup technology to deliver a fresh-brewed, perfect cup of coffee, tea, or cocoa every time at just the touch of a button. Brewers with Keurig Brewed® technology were the top five selling coffeemakers in the U.S. on a dollar basis for the period of October through December 2010 and represented an estimated 49 percent of total coffeemaker dollar sales for that period according to The NPD Group.

* Source: Combined data from Euromonitor, Nielsen, Starbucks internal data and GMCR filings.

About Starbucks Corporation

Since 1971, Starbucks Corporation (NASDAQ: SBUX) has been committed to ethically sourcing and roasting the highest quality arabica coffee in the world. Today, with stores around the globe, the company is the premier roaster and retailer of specialty coffee in the world. In addition to its Starbucks retail stores, the company produces a wide range of branded consumer products globally, including ready-to-drink beverages, packaged coffees and premium ice creams. The company's brand portfolio features Starbucks Coffee, Tazo Tea, Seattle's Best Coffee and Torrefazione Italia Coffee, enabling Starbucks to appeal to a broad consumer base. For more information, please visit us online at www.starbucks.com.

Starbucks Corporation Forward-Looking Statements

Certain statements contained herein are not based on historical fact and are "forward-looking statements" within the meaning of the applicable securities laws and regulations. Generally, these statements can be identified by the use of words such as "anticipate," "believe," "could," "estimate," "expect," "feel," "forecast," "intend," "may," "plan," "potential," "project," "should," "will," "would," and similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These statements are based on information available to Starbucks as of the date hereof, and Starbucks actual results or performance could differ materially from those stated or implied, due to risks and uncertainties associated with its business. These risks and uncertainties include: evolving understanding of the definition of and consumer preference for super-premium coffee; continued growth in the single-serve sector of the coffee industry and market acceptance of Starbucks coffee in that sector; the ability of Starbucks to accelerate its growth in the single-serve sector; continued consumer success of the Keurig Single-Cup Brewing system, including successful distribution of the System through Starbucks stores; the potential introduction of super-premium coffee by new market entrants including on the Keurig Single-Cup Brewing system; the long-term success of the strategy to make portion packs available through various U.S. and Canadian retailers, including Starbucks stores and GMCR's consumer-direct website; and the risk factors disclosed in the most recent Annual Report on Form 10-K, which Starbucks filed with the Securities and Exchange Commission on November 22, 2010. Forward-looking statements reflect management's analysis as of the date of this release. Starbucks does not undertake to revise these statements to reflect subsequent developments, except as required under the federal securities laws.

About Green Mountain Coffee Roasters, Inc.

As a leader in specialty coffee and coffee makers, Green Mountain Coffee Roasters, Inc. (NASDAQ: GMCR), is recognized for its award-winning coffees, innovative brewing technology, and socially responsible business practices. GMCR's operations are managed through three business units. The Keurig business unit is comprised of Keurig, Incorporated, a wholly owned subsidiary of GMCR. Keurig is a pioneer and leading manufacturer of gourmet single-cup brewing systems for both at-home and away-from home use, predominantly in North America. The Specialty Coffee business unit produces, markets and sells coffee, tea, hot cocoa and other beverages in a variety of packaging formats, including K-Cup® portion packs for Keurig Single-Cup Brewers. The Canadian business unit produces, markets and sells coffees in K-Cup portion packs and other packaging formats and is responsible for managing the Van Houtte business as well as the grocery channel for all GMCR coffee brand sales in Canada. GMCR supports local and global communities by offsetting 100% of its direct greenhouse gas emissions, investing in sustainably-grown coffee, and allocating at least five percent of its pre-tax profits to socially and environmentally responsible initiatives.

GMCR routinely posts information that may be of importance to investors in the Investor Relations section of its website, including news releases and its complete financial statements, as filed with the SEC. The Company encourages investors to consult this section of its website regularly for important information and news. Additionally, by subscribing to the Company's automatic email news release delivery, individuals can receive news directly from GMCR as it is released. For more information, please visit www.GMCR.com.

GMCR Forward-Looking Statements

Certain statements contained herein are not based on historical fact and are "forward-looking statements" within the meaning of the applicable securities laws and regulations. Generally, these statements can be identified by the use of words such as "anticipate," "believe," "could," "estimate," "expect," "feel," "forecast," "intend," "may," "plan," "potential," "project," "should," "would," and similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Forward-looking statements made by GMCR in this press release include: Starbucks loyal consumers will soon be able to choose, brew and enjoy their favorite Starbucks coffee in their own homes through the quality, convenience and consistent preparation of the Keurig Single-Cup Brewing System. These statements are based on information available to the Company as of the date hereof; and GMCR's actual results or performance could differ materially from those stated or implied, due to risks and uncertainties associated with its business, which include the risk factors disclosed in its Annual Report on Form 10-K, which GMCR filed with the Securities and Exchange Commission on December 9, 2010. Forward-looking statements reflect management's analysis as of the date of this release. The Company does not undertake to revise these statements to reflect subsequent developments, except as required under the federal securities laws.

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Posted by Jay Brewer at March 10, 2011 7:43 AM

Recent Comments

The pods found in Starbucks stores are specifically designee for espresso machines, not single cup brewers. They may work, but were not designed for those machines, so the taste quality cannot be assurred. U can use the hot water setting & Via though-talk to your barista!


Posted by: Nissa at October 16, 2011 10:36 AM

Had to break down and buy a Keurig, hated to say bye to my Tassimo, but needed some good coffee...


Posted by: Patty at September 26, 2011 2:53 PM

This is so sad. Many customer reviews state Tassimo machines brew higher quality coffee than Keurig, and Starbuck's was the best coffee for Tassimo. I hope to find a new blend of T-discs that are at least comparable to Starbuck's. Not giving up my Tassimo any time soon.


Posted by: Mocha at March 20, 2011 3:41 PM

@Chris K. - Probably not much longer. Starbucks T-Disc production ended on 1 MAR. Stock up ASAP!


Posted by: Chris Sedelmaier at March 14, 2011 9:26 AM

Starbucks should seriously consider offering an incentive to Tassimo owners that want to continue to buy Starbucks coffee so they dont loose that portion of the market.
Perhaps a credit for a trade-in on their Tassimo machine for a single cup coffeemaker that will brew Starbucks coffee. While this might have an initial cost, it would be made up by retaining the loyal customers instead of loosing them to Kraft.
I dont see Starbucks having a chance to continue offering t-discs being that it will be a conflict of interest with Kraft.
I love my Tassimo machine but im willing to give it up, if i can continue to have Starbucks coffee!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!


Posted by: beermug at March 13, 2011 3:19 PM

In reply to Steve, Starbucks already sells pods in their retail stores. I can't recall how many are in a box, but I saw a few boxes on display at my local store the other day. If they have pods here in Canada, I'm sure they're more widely avail. across Starbucks stores in USA.


Posted by: SH at March 10, 2011 11:25 PM

Hmm. If Starbucks is the "exclusive super-premium brand" for Keurig now, Peet's probably won't be coming to it. As a Keurig owner, I'm somewhat disturbed by this for opposite reasons of other commenters -- I want to know what this means for brands I consider to be Starbucks' equal that already produce K-Cups.

(I should note I say "Keurig owner" rather than "Keurig user," as I am one of the many Keurig owners who finds themselves with a machine with a bad pump. Ironically, it's because I found the selection for other machines somewhat limited that I went with Keurig -- Starbucks alone wasn't enough to get me to go with Tassimo.)


Posted by: Watts Martin at March 10, 2011 10:13 PM

I hope Kraft can come up with some EASILY AVAILABLE alternatives to Starbucks for the US market, besides its plan to expand the Gevalia offerings. Otherwise I don't think Tassimo has much of a future in the US. I also hope Starbucks is willing to produce single serve pods in the future, and not just jump on the blase' K-cup bandwagon.


Posted by: Steve at March 10, 2011 10:45 AM

I agree with Chris K. Not very happy about this news because between this announcement and the rumor of Peet's also going the way of the K-cup, I'm going to be forced to cave and get one. I adore my Tassimo so much, I loathe the idea of having to switch. Can't they just all get along and make both T-discs and K-cups together? Geez....


Posted by: Shawn M. at March 10, 2011 9:18 AM

I wonder how much longer I can pick up Starbucks for my Tassimo, in this case? This is very disappointing - I'm not interested in moving to a K-cup brewer because you can't get the other beverage options like with Tassimo.


Posted by: Chris K at March 10, 2011 8:54 AM

I can see the news channel headlines now... "Reports of spontaneously combusting Tassimo single serve coffee machines have been sweeping the nation. Retailers have noted sharp spikes in customer returns. Kraft refuses to acknowledge anything is going on."


Posted by: SH at March 10, 2011 7:52 AM
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