Shortly, there will be far more Starbucks (NASDAQ:SBUX) packets available for Keurigs.
The coffee retailer — which markets its own single-serving coffee machine — just signed a new 5-year agreement to triple the number of K-Cup packets it produces for Green Mountain (NASDAQ:GMCR), the Associated Press reports.
In response to the success of the Keurig, last year Starbucks brought out its own single-serving machine the Verismo. However, the company aims its machine at the espresso and latte markets and notes that Keurigs are primarily bought by coffee drinkers.
In the new deal, Starbucks will — in addition to Starbucks branded packets — produce them for its Teavana and Seattle’s Best brands. The companies said that the deal now extends beyond North America but did not supply details.
Shares in Green Mountain are up 21.30% in midday trading while Starbucks is flat.