Starbucks to Make Announcement on Single-Serve Coffee


Starbucks (SBUX) said it will soon make a major announcement about a new product for the single-serve market.

The company is preparing for the expiration of its agreement with Kraft Foods (KFT), Reuters reported. Under the terms of the agreement, which expires March 1, Starbucks provides coffee for Kraft's Tassimo one-cup home brewer.

Starbucks is seeking to go beyond its traditional model of selling cups of coffee in stores. Last year it introduced the Via instant coffee brand, drawing in new customers.

It's not clear what the new announcement will be, analysts say. Some expect Starbucks to provide coffee for Green Mountain Coffee's Keurig brewing system, which holds about 80% of the single-cup coffee market.

Others feel such a deal is unlikely, given that many Green Mountain patents are about to expire.

"Starbucks is currently exploring all options to expand its presence in the premium single-cup coffee category, beyond our initial entry with Starbucks Via Ready Brew," Starbucks spokeswoman Lara Wyss told Reuters.