Friday, January 28, 2011

Starbucks Ticked at Kraft

Apparently Starbucks is very ticked off at Kraft foods right now.  Starbucks entered into a 13 year agreement with Kraft to push their coffee out into grocery stores and other venues.  To say the partnership hasn't been a success is a bit of an understatement.  Sales of their instant coffee, Via, in grocery stores seems to be tanking.  See the picture left for an example of how my local grocery store is slashing the price (over 50%) of Via to move the product off it's shelves.

In addition to that Starbuck's is missing out on the single serve coffee bonanza that is currently going on.  Since Starbucks is only available on the Tassimo (3% market share) coffee maker it is unavailable to the majority of single serve coffee makers as the Keurig brand controls about 70% of the market.

As much as I enjoy Starbucks coffee the availability of many different k-cups for the Keurig was the tipping point when we were deciding what single server coffee maker we would get at Christmas.

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