Green Mountain Coffee Roasters, which has a large roasting and distribution plant in Knox County, has struck a much anticipated deal with Starbucks, the big dog in the retail coffee business.
Investors like the news. GMCR shares are soaring, up close to 30 percent by late morning. Trading volume was heavy.
The deal calls for the companies to make single-serve Starbucks coffee and Tazo tea available for Green Mountain’s Keurig single-cup brewing system.
Rumors of a Green Mountain-Starbucks deal have been swirling for weeks. It wil be interesting to see if consumers respond as favorably as investors. I’m guessing they will.
“Starbucks is the exclusive, licensed super-premium coffee brand produced by GMCR for the Keurig Single-Cup brewing system. Starbucks and GMCR plan to make Starbucks K-Cup portion packs available through food, drug, mass, club, specialty and department store retailers throughout the U.S. and Canada beginning in the fall of 2011,” Green Mountain said in a press release.
Seattle Times: Starbucks, Green Mountain in single-cup deal