News

Starbucks drops exclusivity terms with Keurig

March 17, 2014

Keurig Green Mountain Inc. and Starbucks Coffee Company last week amended terms to their existing five-year agreement.

According to a news release, 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 exclusivity terms of the existing agreement, Starbucks will receive improved business terms, including expanded Starbucks K-Cup pack and variety types.

"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," said John Culver, Starbucks group president in China and Asia Pacific for channel development and emerging brands.