Keurig Green Mountain, Inc. (Keurig) and Starbucks Coffee Co. announced amended terms to the companies' existing five-year agreement.
The companies have updated their agreement to continue to expand Starbucks range of K-Cup® pack offerings and to promote expanded consumer choice as Keurig continues to build its Keurig® brewing system. In exchange for eliminating the super-premium coffee exclusivity terms of the existing agreement Starbucks will receive improved business terms, including significantly expanded Starbucks K-Cup® pack and variety types.
Starbucks Coffee Co. group President, China and Asia Pacific, Channel Development and Emerging Brands, John Culver said in a prepared statement, "This amendment advances Starbucks commitment to strengthening its global leadership position in the nearly $8 billion premium single cup coffee category. With nearly 2 billion Starbucks K-Cup® packs shipped from the inception of our relationship through the end of 2013 this contractual update underscores the appeal of Starbucks to the millions of Keurig brewer owners and the continued innovation and collaboration our relationship reflects."
"This amended agreement creates more favorable business terms for both companies and allows us to build upon our strong relationship," said Mark Wood, senior vice president, global hot systems for Keurig.
