Coffee and Tea lovers now have two specialty coffee giants
come together as the oldest and largest privately held specialty
coffee retailer The Coffee Bean & Tea Leaf and
Green Mountain Coffee Roasters Inc
) have joined forces to launch the Coffee Bean & Tea Leaf
K-Cup for Keurig single-cup.
The Coffee Bean & Tea Leaf K-Cup packs will be available
by spring 2014 through various channels to the U.S. customers.
The pact furthers Green Mountain's goal of sustaining its
dominance in the single-serve brewing world even after the
patents for K-cups expired in Sep 2012.
The Keurig business unit of Green Mountain is a pioneer and a
leading manufacturer of gourmet single-cup brewing systems. It
sells beverages produced by other business units of the company
through At Home and Away From Home channels.
The tie up will benefit Coffee Bean & Tea Leaf by boosting
sales of its beverage among Keurig fans. It is expected that the
package of refreshing tea and coffee combined with the
convenience of Keurig brewer will be more popular. Green Mountain
sells K-Cups under different brands including Caribou Coffee,
Gloria Jean's and Van Houtte.
Green Mountain Coffee aims at popularizing the single-cup
brewing system in America and has therefore entered into several
strategic distribution agreements to rope in popular brands like
Dunkin' Brands Group Inc.
) into its portion pack system.
In Mar 2013, Green Mountain signed a deal with
) for the distribution of Lipton's products in K-Cups. Again, in
the same month, Snapple and Green Mountain joined hands to launch
the delicious Snapple K-Cup packs for Keurig single-cup
Through these agreements, Green Mountain is aligning with the
strongest beverage brands to support a range of consumer choices
and taste profiles in Keurig Single-Cup Brewing system.
In May 2012, the company secured a multi-year agreement with
Eight O'Clock Coffee Company, by virtue of which the brands like
Eight O' Clock coffee, Tetley tea and Good Earth tea were made
available in K-Cup and Vue packs for the Keurig Single-Cup
The company is also upgrading its Keurig brewing system to
attract more customers in the face of increasing competition from
new entrants, like Starbucks Corporation
The launch of Starbucks' own single-cup at-home coffee machine
called Verismo in mid-October forced Green Mountain to roll out
affordable and innovative products to capture market shares.
GreenMountainis also focusing on competing with private
labels, as it has entered into an agreement with
Costco Wholesale Corp.
) Under the agreement, Green Mountain will produce private-label
Costco Kirkland and Signature brand K-Cup packs for the Keurig
single-cup brewing system. Shares of Green Mountain currently
carry a Zacks Rank #1 (Strong Buy).
COSTCO WHOLE CP (COST): Free Stock Analysis
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