Starbucks to Provide Single Serve Coffee Brewer in Hotel Rooms
Speculation that Starbucks soon would announce a partnership with Waterbury-based Green Mountain Coffee Roasters Inc had raised the single-serve-brewer maker’s hopes but on March 15, 2011, those hopes fell as did shares after Starbucks announced a single-cup deal with privately held rival, Courtesy Products coffee systems to provide coffee for Courtesy’s brewers in up to 500,000 hotel rooms starting in the fall.
But after Wednesday’s stock holders meeting it seems things are still looking up. At the meeting, Starbucks reiterated its commitment to delivering the world’s best coffee in every format and through every channel. The company highlighted the successful launch of its Starbucks VIA® Ready Brew platform and its recent announcements of strategic relationships with Green Mountain Coffee Roasters, Inc. and Courtesy Products.
“Over our 40-year history, we have built the Starbucks brand with a goal of staying true to our values and our guiding principles with a deep sense of humanity,” stated Howard Schultz. “Going forward, we will continue to focus on what made us a different kind of company, one that balances profitability and social conscience while providing exceptional shareholder value.”
“We are particularly excited about the progress we are making in the premium single-cup segment,” commented Jeff Hansberry, president, Starbucks Global Consumer Products and Foodservice. “The single-cup segment is already a $1.6 billion segment that represents a significant growth engine for the entire U.S. coffee category. We believe that over time we can generate K-Cup® portion pack system sales in excess of $1 billion across all channels.”
Annual U.S. sales of coffee made for single-cup brewing machines as well as instant coffee total nearly $2 billion, according to industry figures. It is the fastest-growing segment of the U.S. coffee market. Starbucks is eager to grab more business in the single-serve cup market, following the company’s October 2009 launch of it’s VIA instant coffee packets, which have racked up more than $194 million in sales.
This article was written by: Cindy Peters
Comments (3)
I fight tooth and nail to keep my kids out of the shops but I might as well surrender when it comes to keeping it out of the house. I just hope it won’t cost me an arm and a leg to get them their fix.
Yeah, I lost my job and can’t afford to even drive to the shop but Starbucks at home without the wait? Where do I sign up????
Yeah baby, and I hear their going to sell them in Bed Bath and Beyond. Make it “student” affordable and I’ll take my 20% coupon there and be in coffee heaven!