Starbucks Coffee Company(NASDAQ: SBUX) andGreen Mountain Coffee Roasters, Inc.(GMCR) (NASDAQ: GMCR), a leader in specialty coffee and coffee makers, today announced the expansion of their strategic relationship for the manufacturing, marketing, distribution and sale ofStarbucks-branded Vuepacks for use in GMCR's recently introducedKeurigVueBrewer.
On the news GMCRreversed a recent slide in stock price and was up $5.09 (10.04%) to$55.79for the day. The stock price has been on a volatile run, falling from over $100 last fall down to nearly $40, climbing back up near $70 before falling again near $50 on the news of Starbucks new espresso machine. GMCRalso will have an espresso machine coming out. Both companies indicated those high-pressure brewers would be available later this year. Starbucks saw only a marginal gain today in stock price.
"We are proud to expand our relationship withGreen Mountain Coffee Roastersand are looking forward to working with our colleagues at GMCR to further accelerate growth in premium single-serve coffee," said Jeff Hansberry, president, Channel Development, forStarbucks. "Premium single cup is the fastest-growing segment of global coffee, and the expansion of our relationship with GMCR allows us to grow further, faster, in the single cup category."
Starbucksis the exclusive, licensed super-premium coffee brand produced by GMCR for the Keurig K-Cup®Single Cup Brewing system and now, with the expanded relationship, the new Vueâ ¢system. According to the terms of the agreement,Keurig®is the exclusive low-pressure (30 psi or under), single cup brewing system of its kind offering fresh-brewedStarbucks®coffee and Tazo®tea.Starbucksand GMCR expect GMCR to distribute Starbucks Vueâ ¢packs initially in specialty, department store, and mass retailers in the U.S. as well as on GMCR's consumer direct websites by fall 2012.
"The success of ourKeurig®Single Cup Brewing system has been driven by choice ‘ choice of coffee brands and beverage varieties, and choice of brewer features and models. With the introduction of Vueâ ¢we've expanded that choice even further, giving consumers a brewer with features and functionality they've told us they value most," said
Lawrence J. Blanford
, GMCR president and CEO. "We believe the customization offered by Vueâ ¢and its appeal as a premium beverage solution will resonate with loyalStarbucksconsumers, and we're pleased to haveStarbucks®coffee as a brand option in the system as we move forward."
AboutStarbucks Corporation
Since 1971,Starbucks Corporation(NASDAQ: SBUX) has been committed to ethically sourcing and roasting the highest qualityarabicacoffee 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 itsStarbucksretail 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 featuresStarbucks Coffee, Tazo Tea, Seattle's Best Coffee and Torrefazione Italia Coffee, enablingStarbucksto appeal to a broad consumer base. For more information, please visit us online atwww.starbucks.com.
Forward-Looking Statements
This release contains forward-looking statements, including relating to a strategic relationship withGreen Mountain Coffee Roasters, Inc.andKeurig, Inc., and expectations and strategy regarding the single serve-coffee sector. These forward-looking statements are based on currently available operating, financial and competitive information and actual results may vary materially from those expressed or implied by the statements due to a number of significant risks and uncertainties. These risks and uncertainties include: continued growth in the single-serve sector of the coffee industry and market acceptance ofStarbuckscoffee in that sector; the ability ofStarbucksto accelerate its growth in the single-serve sector; the success of theKeurig®Vueâ ¢Brewer; competition from existing and new premium coffee entrants including similar single-serve platforms; and other risks detailed in theStarbucksfilings with theSecurities and Exchange Commission, including the "Risk Factors" section of Starbucks Annual Report on Form 10-K for the fiscal endedOctober 2, 2011. The company assumes no obligation to update any of these forward-looking statements.
AboutGreen Mountain Coffee Roasters, Inc.
As a leader in specialty coffee and coffee makers,Green Mountain Coffee Roasters, Inc.(GMCR) (NASDAQ: GMCR), is recognized for its award-winning coffees, innovative Keurig® Single Cup brewing technology, and socially responsible business practices. GMCR supports local and global communities by offsetting 100% of its direct greenhouse gas emissions, investing in sustainably-grown coffee, and donating at least five percent of its pre-tax profits to social and environmental projects. For more information, please visit us online atwww.GMCR.com;www.greenmountaincoffeeroasters.comorwww.keurig.com.
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 theSEC.The Companyencourages investors to consult this section of its website regularly for important information and news. Additionally, by subscribing to the Company'sautomatic email news release delivery,individuals can receive news directly from GMCR as it is released.
SEATTLE&WATERBURY, Vt.--(BUSINESS WIRE)--3.21.2012