SEATTLE -- Starbucks Corp. has agreed to give up its status as the exclusive super-premium coffee brand for Keurig Green Mountain Inc. in exchange for Keurig expanding its range of Starbucks K-Cups.
The new terms amend an existing five-year agreement between the companies to make and sell portion packs under the coffeehouse chain's Starbucks and Tazo brands for use in Keurig brewers that named Starbucks as the exclusive "super-premium" coffee brand for Keurig's K-Cups.
The companies said Starbucks will receive "improved business terms," as part of the amended terms, including an expanded range of Starbucks K-Cups and varieties.
Keurig executive Mark Wood said the revised deal "creates more favorable business terms for both companies and allows us to build upon our strong relationship."
Nearly 2 billion Starbucks K-Cup packs shipped from the inception of the companies' relationship through the end of 2013. Starbucks and Keurig Green Mountain began the partnership in March 2011.
The revised deal comes a month after Coca-Cola Co. signed a 10-year to develop its soft drink brands for single-cup use in the Keurig Cold at-home beverage system, set to launch in 2015. Coke also acquired a 10% stake in Keurig Green Mountain, valued at $1.25 billion. | SEE STORY