| LOS ANGELES
LOS ANGELES Oct 15 Starbucks Corp's
U.S. stores on Tuesday will begin selling the coffee chain's new
Verismo coffee and espresso brewer, which aims to grab a piece
of the fast-growing single-serve market dominated by Green
Mountain Coffee Roasters Inc and Nestle SA.
Shares of Green Mountain tumbled when Starbucks first
announced plans for the Verismo in March.
Green Mountain's Keurig single-cup coffee machines control
more than three-quarters of the U.S. market. Nestle's
Nespresso espresso makers hold a 35 percent share globally, with
a heavy concentration in Europe.
Starbucks' Verismo machine, which sells for $199 or $399
depending on size and functions, will be offered in about 4,300
company stores beginning on Wednesday. It already is being sold
online and through other U.S. retailers.
Brewers from Green Mountain and Nestle, the dominant players
in the $8 billion single-serve coffee market, are similarly
Green Mountain's new Keurig Vue coffee brewer sells for
around $250, while Nespresso machines can cost anywhere from
$130 to $700.
Under a partnership with Green Mountain, Starbucks provides
coffee-filled K-cups for use in Green Mountain's Keurig
machines. Starbucks has 15 percent share of the K-cup market.