Starbucks to Support Expansion of GMCR’s
Keurig Brewer Platform Beyond North America and Triple the Number of
Starbucks Single Serve Pack SKUs for Keurig Brewers Over Time
SEATTLE & WATERBURY, Va.--(BUSINESS WIRE)--May. 8, 2013--
Starbucks Coffee Company (NASDAQ: SBUX), the world’s largest coffee
retailer, and Green Mountain Coffee Roasters, Inc. (GMCR) (NASDAQ:
GMCR), a leader in specialty coffee and coffeemakers, have signed an
agreement that provides for the expansion of their successful
partnership for the manufacturing, marketing, distribution, and sale
of Starbucks- and Tazo-branded single serve packs for use in GMCR’s
Keurig® single serve brewing systems globally.
Starbucks and GMCR first entered into partnership in March 2011.
Following a very successful product launch, Starbucks has shipped more
than 850 million Starbucks® coffee K-Cup® packs. Today’s announcement
recognizes the tremendous success of the Starbucks and GMCR strategic
relationship, and both companies’ desire to broaden, deepen and
significantly extend their partnership.
The new, minimum five-year agreement announced today is a global
single-serve coffee industry game changer. Under the new agreement,
Starbucks will add brands and varietals to the already robust Starbucks®
K-Cup® and Vue® pack portfolio of offerings for Keurig® single cup
brewers, ultimately tripling the number of Starbucks® products and
adding brands offered on the Keurig® platform. New brands will include
Seattle’s Best Coffee®, Torrefazione Italia® coffee, Teavana® Teas, and
Starbucks® Cocoa. The new agreement reinforces Starbucks position
as the exclusive licensed super premium coffee brand on the Keurig®
K-Cup® and Vue® platforms, and further extends the Keurig® system’s
position as the exclusive low-pressure single cup brewing system for
fresh-brewed Starbucks® coffee, Tazo® tea and the aforementioned
Starbucks brands. Financial terms of the agreement were not disclosed.
“Starbucks new agreement with GMCR strengthens our leadership position
in the premium single cup category, the segment of our industry that has
grown nine times faster than the overall coffee category during the past
year and a category that now accounts for more than 25 percent of total
coffee sales in grocery,” said Howard Schultz, Starbucks chairman,
president and ceo. “The new agreement also affords us the opportunity
to expand our successful K-Cup® and Vue® pack portfolio of products and
brands beyond North America and to market them on a truly global scale
over time. It's a win-win-win agreement for both companies and for
premium coffee consumers around the world. Going forward, not only will
Starbucks continue to leverage GMCR’s growing installed Keurig® brewer
base totaling millions of North American households, but GMCR will
directly benefit from the many Starbucks brand assets we bring to bear
on the coffee marketplace as it pursues global expansion of its business
and platform.”
“With steady, strong consumer adoption, our innovative Keurig® brewing
system has proven to be a disruptive technology for the hot beverage
category, providing consumers the benefits of convenience, consistent
great taste and – importantly – beverage variety, while providing our
partner brands a valuable channel for growth. This agreement further
strengthens our North American partnership with Starbucks and expands
our relationship to explore global single-serve opportunities,” said
Brian P. Kelley, GMCR’s President and CEO. “We have been delighted with
the performance of the Starbucks brand portfolio and are confident the
Keurig® system has significant, untapped potential to continue to change
consumer behavior. And we are looking forward to offering a greater
variety of premium Starbucks® coffee and Starbucks brands to consumers
around the world for the long-term.”
With expanded availability and distribution, sales of Starbucks® coffee
K-Cup® packs increased more than 75 percent in March 2013 over the
previous year. And just last month, Starbucks® coffee K-Cup®
packs were named one of the top 10 launches of 2012, according
to Information Resources, Inc. (IRI), a leading market research company
focused on the consumer packaged goods (CPG) and retail industries.
About Starbucks
Since 1971, Starbucks Coffee Company has been committed to ethically
sourcing and roasting high quality arabica coffee. Today,
with stores around the globe, the company is the premier roaster and
retailer of specialty coffee in the world. Through our unwavering
commitment to excellence and our guiding principles, we bring the unique Starbucks
Experience to life for every customer through every cup. To share in
the experience, please visit us in our stores or online at www.starbucks.com.
Starbucks Forward-Looking Statements
Certain statements contained herein are not based on historical fact and
are "forward-looking statements" within the meaning of the applicable
securities laws and regulations. Generally, these statements can be
identified by the use of words such as "anticipate," "believe," "could,"
"estimate," "expect," "feel," "forecast," "intend," "may," "plan,"
"potential," "project," "should," "will," "would," and similar
expressions intended to identify forward-looking statements, although
not all forward-looking statements contain these identifying words.
These statements are based on information available to Starbucks as of
the date hereof, and Starbucks actual results or performance could
differ materially from those stated or implied, due to risks and
uncertainties associated with its business. These risks and
uncertainties include: evolving understanding of the definition of and
consumer preference for super-premium coffee; continued growth in the
single-serve sector and market acceptance of Starbucks coffee and brands
in that sector; the ability of Starbucks to accelerate its growth in the
single-serve sector; continued consumer success of the Keurig Single-Cup
Brewing system, including successful distribution of the System and
portion packs in existing and contemplated markets and channels
domestically and internationally; the potential introduction of
super-premium coffee by new market entrants including on the Keurig
Single-Cup Brewing system; and the risk factors disclosed in the most
recent Annual Report on Form 10-K, which Starbucks filed with the
Securities and Exchange Commission on November 16, 2012. Forward-looking
statements reflect management's analysis as of the date of this release.
Starbucks does not undertake to revise these statements to reflect
subsequent developments, except as required under the federal securities
laws.
About Green Mountain Coffee Roasters, Inc. (NASDAQ: GMCR)
As a leader in specialty coffee and coffee makers, Green Mountain Coffee
Roasters, Inc. (GMCR) (NASDAQ: GMCR), is recognized for its
award-winning coffees, innovative Keurig® single cup brewing
technology, and socially responsible business practices. GMCR supports
local and global communities by investing in sustainably-grown coffee,
and donating a portion of its profits to social and environmental
projects.
GMCR routinely posts information that may be of importance to investors
in the Investor Relations section of its website, including news
releases and its complete financial statements, as filed with the SEC.
The Company encourages investors to consult this section of its website
regularly for important information and news. Additionally, by
subscribing to the Company's automatic
email news release delivery, individuals can receive news directly
from GMCR as it is released.
GMCR Forward-Looking Statements
Certain information contained in this release, including statements
concerning expected performance such as those relating to net sales,
earnings, cost savings, acquisitions and brand marketing support, are
"forward-looking statements" within the meaning of Section 21E of the
Securities Exchange Act of 1934. Generally, these statements may be
identified by the use of words such as "may," "will," "would," "expect,"
"should," "anticipate," "estimate," "believe," "forecast," "intend,"
"plan" and similar expressions intended to identify forward-looking
statements. These statements may relate to: the expected impact of raw
material costs and our pricing actions on our results of operations and
gross margins, expected trends in net sales and earnings performance and
other financial measures, the expected productivity and working capital
improvements, the ability to maximize or successfully assert our
intellectual property rights, the success of introducing and producing
new product offerings, ability to attract and retain senior management,
the impact of foreign exchange fluctuations, the adequacy of internally
generated funds and existing sources of liquidity, such as the
availability of bank financing, the expected results of operations of
businesses acquired by us, our ability to issue debt or additional
equity securities, our expectations regarding purchasing shares of our
common stock under the existing authorizations, and the impact of the
inquiry initiated by the SEC and any related litigation or additional
governmental inquiry or enforcement proceedings.
These and other forward-looking statements are based on management's
current views and assumptions and involve risks and uncertainties that
could significantly affect expected results. Results may be materially
affected by external factors such as damage to our reputation or brand
name, business interruptions due to natural disasters or similar
unexpected events, actions of competitors, customer relationships and
financial condition, the ability to achieve expected cost savings and
margin improvements, the successful acquisition and integration of new
businesses, fluctuations in the cost and availability of raw and
packaging materials, changes in regulatory requirements, and global
economic conditions generally which would include the availability of
financing, interest, inflation rates and investment return on retirement
plan assets, as well as foreign currency fluctuations, risks associated
with our information technology systems, the threat of data breaches or
cyber-attacks, and other risks described in the Company's filings with
the Securities and Exchange Commission.
Actual results could differ materially from those projected in the
forward-looking statements. The Company undertakes no obligation to
update or revise publicly, any forward-looking statements, whether as a
result of new information, future events or otherwise, except as may be
required by law.
GMCR-C
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Source: Green Mountain Coffee Roasters, Inc. and Starbucks Coffee Company
Starbucks Coffee Company
Alisa Martinez, +1-206-318-8752
press@starbucks.com
or
Starbucks
Coffee Company
JoAnn DeGrande, +1-206-318-7118
investortrelations@starbucks.com
or
Sloane
Public Relations
Darren Brandt, +1-212-446-1861
dbrandt@sloanepr.com
or
Green
Mountain Coffee Roasters
Suzanne DuLong, +1-802-488-2600
Suzanne.DuLong@gmcr.com