Market Snapshot
  • U.S.
  • Europe
  • Asia
Ticker Volume Price Price Delta
DJIA 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 2.54 0.14%
NASDAQ 4,095.52 9.29 0.23%
Ticker Volume Price Price Delta
STOXX 50 3,155.81 16.55 0.53%
FTSE 100 6,625.25 41.08 0.62%
DAX 9,409.71 91.89 0.99%
Ticker Volume Price Price Delta
NIKKEI 14,516.27 98.74 0.68%
TOPIX 1,173.37 6.78 0.58%
HANG SENG 22,760.24 64.23 0.28%

Starbucks and Green Mountain Coffee Roasters Enter Into Expanded, Long-Term Strategic Partnership



  Starbucks and Green Mountain Coffee Roasters Enter Into Expanded, Long-Term
  Strategic Partnership

 Starbucks to Support Expansion of GMCR’s Keurig Brewer Platform Beyond North
 America and Triple the Number of Starbucks Single Serve Pack SKUs for Keurig
                              Brewers Over Time

Business Wire

SEATTLE & WATERBURY, Va. -- May 08, 2013

Starbucks Coffee Company (NASDAQ: SBUX), the world’s largest coffee
retailer, and Green Mountain Coffee Roasters, Inc. (GMCR) (NASDAQ: GMCR), a
leader in specialty coffee and coffeemakers, have signed an agreement that
provides for the expansion of their successful partnership for the
manufacturing, marketing, distribution, and sale of Starbucks- and
Tazo-branded single serve packs for use in GMCR’s Keurig® single serve brewing
systems globally.

Starbucks and GMCR first entered into partnership in March 2011. Following a
very successful product launch, Starbucks has shipped more than 850
million Starbucks® coffee K-Cup® packs. Today’s announcement recognizes the
tremendous success of the Starbucks and GMCR strategic relationship, and both
companies’ desire to broaden, deepen and significantly extend their
partnership.

The new, minimum five-year agreement announced today is a global single-serve
coffee industry game changer. Under the new agreement, Starbucks will add
brands and varietals to the already robust Starbucks® K-Cup® and Vue® pack
portfolio of offerings for Keurig® single cup brewers, ultimately
tripling the number of Starbucks® products and adding brands offered on the
Keurig® platform. New brands will include Seattle’s Best Coffee®,
Torrefazione Italia® coffee, Teavana® Teas, and Starbucks® Cocoa. The new
agreement reinforces Starbucks position as the exclusive licensed super
premium coffee brand on the Keurig® K-Cup® and Vue® platforms, and further
extends the Keurig® system’s position as the exclusive low-pressure single cup
brewing system for fresh-brewed Starbucks® coffee, Tazo® tea and the
aforementioned Starbucks brands. Financial terms of the agreement were not
disclosed.

“Starbucks new agreement with GMCR strengthens our leadership position in the
premium single cup category, the segment of our industry that has grown nine
times faster than the overall coffee category during the past year and a
category that now accounts for more than 25 percent of total coffee sales in
grocery,” said Howard Schultz, Starbucks chairman, president and ceo. “The new
agreement also affords us the opportunity to expand our successful K-Cup® and
Vue® pack portfolio of products and brands beyond North America and to market
them on a truly global scale over time. It's a win-win-win agreement for both
companies and for premium coffee consumers around the world. Going forward,
not only will Starbucks continue to leverage GMCR’s growing installed Keurig®
brewer base totaling millions of North American households, but GMCR will
directly benefit from the many Starbucks brand assets we bring to bear on
the coffee marketplace as it pursues global expansion of its business and
platform.”

“With steady, strong consumer adoption, our innovative Keurig® brewing system
has proven to be a disruptive technology for the hot beverage category,
providing consumers the benefits of convenience, consistent great taste and –
importantly – beverage variety, while providing our partner brands a valuable
channel for growth. This agreement further strengthens our North American
partnership with Starbucks and expands our relationship to explore global
single-serve opportunities,” said Brian P. Kelley, GMCR’s President and CEO.
“We have been delighted with the performance of the Starbucks brand portfolio
and are confident the Keurig® system has significant, untapped potential to
continue to change consumer behavior. And we are looking forward to offering a
greater variety of premium Starbucks® coffee and Starbucks brands to consumers
around the world for the long-term.”

With expanded availability and distribution, sales of Starbucks® coffee K-Cup®
packs increased more than 75 percent in March 2013 over the previous
year. And just last month, Starbucks® coffee K-Cup® packs were named one of
the top 10 launches of 2012, according to Information Resources, Inc. (IRI), a
leading market research company focused on the consumer packaged goods (CPG)
and retail industries.

About Starbucks

Since 1971, Starbucks Coffee Company has been committed to ethically sourcing
and roasting high quality arabica coffee. Today, with stores around the globe,
the company is the premier roaster and retailer of specialty coffee in the
world. Through our unwavering commitment to excellence and our guiding
principles, we bring the unique Starbucks Experience to life for every
customer through every cup. To share in the experience, please visit us in our
stores or online at www.starbucks.com.

Starbucks 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 and
market acceptance of Starbucks coffee and brands 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 and portion packs in existing and contemplated
markets and channels domestically and internationally; the potential
introduction of super-premium coffee by new market entrants including on the
Keurig Single-Cup Brewing system; 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 16, 2012. 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. (NASDAQ: GMCR)

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
investing in sustainably-grown coffee, and donating a portion of its profits
to social and environmental projects.

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.

GMCR Forward-Looking Statements

Certain information contained in this release, including statements concerning
expected performance such as those relating to net sales, earnings, cost
savings, acquisitions and brand marketing support, are "forward-looking
statements" within the meaning of Section 21E of the Securities Exchange Act
of 1934. Generally, these statements may be identified by the use of words
such as "may," "will," "would," "expect," "should," "anticipate," "estimate,"
"believe," "forecast," "intend," "plan" and similar expressions intended to
identify forward-looking statements. These statements may relate to: the
expected impact of raw material costs and our pricing actions on our results
of operations and gross margins, expected trends in net sales and earnings
performance and other financial measures, the expected productivity and
working capital improvements, the ability to maximize or successfully assert
our intellectual property rights, the success of introducing and producing new
product offerings, ability to attract and retain senior management, the impact
of foreign exchange fluctuations, the adequacy of internally generated funds
and existing sources of liquidity, such as the availability of bank financing,
the expected results of operations of businesses acquired by us, our ability
to issue debt or additional equity securities, our expectations regarding
purchasing shares of our common stock under the existing authorizations, and
the impact of the inquiry initiated by the SEC and any related litigation or
additional governmental inquiry or enforcement proceedings.

These and other forward-looking statements are based on management's current
views and assumptions and involve risks and uncertainties that could
significantly affect expected results. Results may be materially affected by
external factors such as damage to our reputation or brand name, business
interruptions due to natural disasters or similar unexpected events, actions
of competitors, customer relationships and financial condition, the ability to
achieve expected cost savings and margin improvements, the successful
acquisition and integration of new businesses, fluctuations in the cost and
availability of raw and packaging materials, changes in regulatory
requirements, and global economic conditions generally which would include the
availability of financing, interest, inflation rates and investment return on
retirement plan assets, as well as foreign currency fluctuations, risks
associated with our information technology systems, the threat of data
breaches or cyber-attacks, and other risks described in the Company's filings
with the Securities and Exchange Commission.

Actual results could differ materially from those projected in the
forward-looking statements. The Company undertakes no obligation to update or
revise publicly, any forward-looking statements, whether as a result of new
information, future events or otherwise, except as may be required by law.

GMCR-C

Photos/Multimedia Gallery Available:
http://www.businesswire.com/multimedia/home/20130508006677/en/

Multimedia
Available:http://www.businesswire.com/cgi-bin/mmg.cgi?eid=50628676&lang=en

Contact:

Starbucks Coffee Company
Alisa Martinez, +1-206-318-8752
press@starbucks.com
or
Starbucks Coffee Company
JoAnn DeGrande, +1-206-318-7118
investortrelations@starbucks.com
or
Sloane Public Relations
Darren Brandt, +1-212-446-1861
dbrandt@sloanepr.com
or
Green Mountain Coffee Roasters
Suzanne DuLong, +1-802-488-2600
Suzanne.DuLong@gmcr.com
Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement