Kroger’s to Sell K-Cups, Green Mountain Shares Drop

Consumers who like to use single-serving brewers to make their coffee, and who shop at Kroger‘s (NYSE:KR) stores, will soon have a new option in pre-packaged single-serve coffees.

The supermarket chain says it will introduce its own branded coffees in K-Cups, single-serving containers designed to be compatible with Keurig coffee makers from Green Mountain Coffee Roasters (NASDAQ:GMCR), and possibly other manufacturers, Reuters noted.

Shares of Kroger’s edged slightly lower in midday trading on Monday, while shares of Green Mountain Coffee Roasters plunged more than 7%.

The market for single-serving coffee brewing remains a fraction of the overall coffee market, but it has attracted a number of leading brand names including, Starbucks (NASDAQ:SBUX), Kraft (NYSE:KFT), Sara Lee (NYSE:SLE) and Nestle (PINK:NSRGY) as consumers look for increased taste and home brewing ease.

Single-serving coffee brewers have proven successful for Green Coffee Mountain Roasters, which purchased Keurig, the manufacturer of the K-Cup and Vue single-service brewing machines in 2006.

Starbucks has announced plans to offer its branded coffees in Keurig-compatible containers at Starbucks locations. Last week, Starbucks also announced plans to partner with Coinstar to launch hundreds of automated kiosks in supermarkets and malls dispensing Seattle’s Best coffee in single serving cups for $1.

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