Green Mountain (GMCR) Rips Higher On Huge Starbucks (SBUX) Deal and Opportunity
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Green Mountain Coffee Roasters (Nasdaq: GMCR) are surging higher this morning following a long-awaited K-Cup deal with Starbucks (Nasdaq: SBUX).
At last check GMCR stock was up 28 percent to $56. SBUX shares are also up an impressive 6 percent.
After months of posturing, Starbucks realized that its best path for growth in the single-cup market was to partner with the leader Green Mountain.
The deal provides 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.
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.
Starbucks CEO Howard Schultz said the opportunity in the single-cup market is huge. "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, according to various data.
At last check GMCR stock was up 28 percent to $56. SBUX shares are also up an impressive 6 percent.
After months of posturing, Starbucks realized that its best path for growth in the single-cup market was to partner with the leader Green Mountain.
The deal provides 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.
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.
Starbucks CEO Howard Schultz said the opportunity in the single-cup market is huge. "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, according to various data.
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