Keurig Green Mountain And Starbucks Agree To Amend Agreement
Shares of Keurig Green Mountain Inc. (NASDAQ: GMCR), were on the rise Friday, after the company announced it has agreed to new terms in its deal with Starbucks (NASDAQ: SBUX). In this new contract, in exchange for eliminating the coffee exclusivity terms of the existing agreement, Starbucks will receive improved business terms, including expanding Starbucks K-Cup pack and other variety types.
Mark Wood, Senior Vice president, Global Hot Systems for Keurig said, “This amended agreement creates more favorable business terms for both companies and allows us to build upon our strong relationship.”
John Culver, Starbucks Coffee Company group president said, ““This amendment advances Starbucks commitment to strengthening its global leadership position in the nearly $8 billion premium single cup coffee category. With nearly 2 billion Starbucks K-Cup® packs shipped from the inception of our relationship through the end of 2013 this contractual update underscores the appeal of Starbucks to the millions of Keurig brewer owners and the continued innovation and collaboration our relationship reflects.”
Shares of Keurig Green Mountain jumped $3.12 per share or 2.94 percent to $109.28, while shares of Starbucks were relatively neutral at $74.30
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.