By Phil Wahba
March 14 Starbucks Corp will get a
wider selection of Keurig Green Mountain Inc's
single-serve K-Cup coffee packs, in exchange for giving up the
exclusive license for Keurig's highest-end coffee pods, the
companies said on Friday.
Keurig Green Mountain shares rose 8 percent on Friday to
$114.71 on speculation changes to the agreement will open the
door for it to secure licenses with other leading coffee brands
with which it does not already have such arrangements.
"We think the amended agreement allows Green Mountain to
pursue a relationship with Peet's, the largest unlicensed
super-premium not currently on the Keurig system," Stifel
Nicolaus analyst Mark Astrachan said in a research note.
The new terms to the Starbucks-Keurig deal are changes to
the five-year agreement the two companies reached last year that
tripled the number of Starbucks drinks sold in K-Cups, adding
Seattle's Best and Torrefazione Italia coffees, Teavana teas and
Under terms of the 2013 deal, which replaced their first
agreement in 2011, Starbucks kept the exclusive rights to be the
licensed "super-premium coffee" brand on the Keurig K-Cup
The Keurig machine popularized the use of pods, small
packets containing everything from coffee, tea or hot chocolate
powder, for easy, in-home, one-cup brewing of hot drinks.
The company has sold more than 30 million Keurig machines
around the world for use in homes, offices and other locations.