Keurig Canada, the Canadian unit of Keurig Green Mountain Inc. ( GMCR ) and quick service restaurant retailer, MTY Food Group Inc. ("MTY"), recently entered into an agreement to jointly run the Van Houtte Café-Bistros franchise network in Canada. Keurig Canada markets flagship brands like Keurig, Van Houtte, Timothy's World Coffee, Barista Prima Coffeehouse, Tully's and Café Escapes.
Per the deal, Keurig Canada will retain Van Houtte's brand image and wholesale business, while the cafes will be run and operated by MTY.
MTY will offer Van Houtte-branded coffee and Keurig Brewed products for sale in Van Houtte-branded Café-Bistros.The Canada-based quick service restaurant chain has acquired 50 franchised and one Keurig-owned café-bistro in Quebec in connection with the Van Houtte Café-Bistro system.
The new deal will enable Keurig Green Mountain to focus on roasting, packaging and distributing the Van Houtte coffees. Moreover, Keurig will benefit from MTY's expertise in operating quick service restaurants, thus ensuring superior service to customers visiting the cafes.
Keurig Green Mountain has been looking for options to popularize its K-Cup single serve system in the quick service retail space. In Jun 2014, the coffee maker entered into an agreement with the famous U.S. restaurant chain, Subway, to install the new K150 brewer series at the latter's restaurants across the country.
Keurig Green Mountain currently carrying a Zacks Rank #2 (Buy) has also roped in big brands like Dunkin' Brands Group Inc . ( DNKN ), Unilever plc ( UL ) and Starbucks Corp . ( SBUX ) into its portion pack systems through strategic distribution agreements.
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