Single Cup Coffee Brewers To Be Sold at Starbucks Stores – New Single Serve Coffee Technologies Coming Soon
UNITED STATES (March 18, 2011) – Coffee Market Update: The world’s leading coffee chain is now in partnership with the company that dominates the single-serve coffee market. Starbucks and Green Mountain Coffee Roasters came to an agreement in which both will receive something from the other.
Today there are an estimated twelve million Green Mountain single-serve machines in use (under the Keurig brand which is owned by Green Mountain). At the same time only about twenty percent of Starbucks customers own a single-serve machine.
Starbucks now will have a considerable interest in the single-serve coffee arena and many expect new products to be introduced in this market.
VIA Instant Coffee A Success – Starbucks Seeks to Expand Single Serve Offerings in 2011
Starbucks has already generated more than $200 million from its relatively new VIA instant coffee product which is sold not only at Starbucks cafes but also at 30,000 other locations worldwide. Some industry analysts say the Via product sales could increase five-hold by 2015.
VIA might be considered a “single serving” product since it is sold in individual single serve packets, though it is instant coffee rather than whole bean coffee that is roasted, ground and brewed in Keurig single-serve brewers.
Starbucks was not required to put up any capital for the deal with Green Mountain and the details of the agreement have not yet been released.
Last month Starbucks announced a partnership with a company called Courtesy that has single-serving machines in about one half million hotel rooms. Starbucks will begin supplying coffee for those locations in the fall.
Coffee Makers – Single Cup Brewing Staged for Growth
Under the agreement with Green Mountain and Starbucks will sell coffee and Tazo tea pods – known as K-Cups (K-Cup single-cup pods) and brewed in the Keurig single serve coffee brewing machines – at North American grocery stores, department stores, drugstores and wholesale clubs.
The in 2012 Starbucks will start selling the Keurig single serve brewing machines in Starbucks cafes. Though there is some competition in the market, many consider the Keurig to be the best single cup coffee maker.
Read About Coffees From The World’s Three Main Coffee Growing Regions:
Single Serving Coffee Maker Partnership Will Likely Benefit Both Companies in Growing Market
Most analysts see the single serve market as the major area of growth for the coffee industry in the coming years. Many had expected Starbucks to create and market its own single serve brewing machine and compete with Green Mountain but instead the company’s will work together.
The United States’ single-cup coffee market is estimated at about $4 billion annually and growing. The deal with Green Mountain allows Starbucks to be the exclusive licensed “super-premium brand” for the Keurig brewing systems.
Single Serve Coffee Maker Very Popular in 2011
Currently the Keurig machines have more than an eighty percent market share in the single serve coffee market (also known as the single-cup coffee sector which utilizes single cup coffee makers.
Competition in the Single Cup Coffee Market
Some competition is provided by the Tassimo machine (produced by Kraft) and the Senseo brewer (produced by Sara Lee) as well as the Nespresso brewing system sold by Nestle and leading in Europe’s single serving market.
Single Serve Coffee Market Growing Fast in 2011! – Starbucks To Sell Single Cup Coffee Makers With Green Mountain
Beginning next year Starbucks K-Cup pods as well as the Keurig brewing systems will be available in Starbucks stores and the Starbucks Pods in multiple flavors will also be for sale on the Green Mountain Coffee Roasters website.
Though the deal between Green Mountain and Starbucks is a multi-year deal, it is not exclusive and Starbucks made a point of saying that they are still exploring other single-serve coffee market opportunities, and that they see many areas of potential growth within the market space.
Next year the K-Cup and Keurig brewing system patents begin to expire and there is said to be an array of new products and patents in development at fairly advanced stages of readiness for the single cup coffee brewers.
It remains unclear whether Green Mountain’s deal with Starbucks include these up-and-coming single serve technologies.