Starbucks Extends Keurig Capsule Deal With Green Mountain for 5 Years

Coffee drinkers relying on single-serve machines have long faced a choice: stick with the convenience of capsules or expand into more specialty options. For years, Green Mountain’s Keurig system has dominated that space—but up until recently, it lacked the full backing of major specialty brands like Starbucks. That changed significantly in 2013 when Starbucks not only committed to the platform but expanded its presence with more subsidiary brands.

Yes, Starbucks just signed a new five-year contract with Green Mountain Coffee to continue supplying its coffee capsules for Keurig machines. This deal also includes more of its sister brands such as Seattle’s Best Coffee, Torrefazione Italia, and Teavana teas. Starbucks capsules saw over 75% year-on-year growth as of March.

Why Starbucks Is Doubling Down on Keurig Capsules

According to CNBC, Starbucks CEO Howard Schultz revealed that capsule sales for Keurig machines had jumped more than 75% in March compared to the same month the previous year. That surge made it clear: there's strong demand for Starbucks-branded coffee in single-serve formats. The new five-year contract ensures this product line continues—and even expands beyond North America into international markets.

The Competitive (and Sometimes Friendly) Rivalry with Green Mountain

The relationship between Starbucks and Green Mountain has been complex. While they are now partners, they’ve also been competitors. In late 2012, Starbucks launched its own single-serve system, the Verismo, directly challenging Keurig. Despite that, the market for Keurig machines has remained robust, thanks to the wide selection of brands—users can choose capsules from Timothy’s World Coffee, Van Houtte, Caribou Coffee, and, of course, Starbucks and its affiliates.

What the New Deal Means for Green Mountain’s Bottom Line

Green Mountain Coffee reported its fiscal second-quarter results shortly after announcing the extension with Starbucks. The company posted a 14% revenue increase to $1 billion, driven largely by strong coffee capsule sales. Earnings per share hit 93 cents. With the positive financials and the renewed Starbucks partnership, Green Mountain’s stock surged 16.24% in after-hours trading to $69.14.

Frequently Asked Questions

What is the new Starbucks and Green Mountain Coffee deal about?

Starbucks has signed a new five-year contract with Green Mountain Coffee to continue providing coffee capsules for Keurig single-serve machines. This deal also includes additional Starbucks sub-brands like Seattle’s Best Coffee, Torrefazione Italia, and Teavana teas.

How much did Starbucks capsule sales grow recently?

According to Starbucks CEO Howard Schultz, sales of Starbucks coffee capsules for Keurig machines increased by more than 75% in March compared to the same month in the previous year.

What other brands can you use with Keurig machines?

Keurig machines support a variety of coffee capsule brands including Timothy’s World Coffee, Van Houtte, Caribou Coffee, as well as Starbucks and its affiliated brands like Seattle’s Best Coffee.

How did Green Mountain Coffee perform financially recently?

Green Mountain Coffee reported a 14% rise in revenue to $1 billion and earnings per share of 93 cents. Following the news of the extended Starbucks partnership, its stock price jumped 16.24% to $69.14 in after-hours trading.

What is the Verismo system that Starbucks launched?

The Verismo was Starbucks’ own single-serve coffee system, launched in late 2012 as a direct competitor to Keurig machines. Despite this, Starbucks continued and expanded its capsule supply for Keurig systems through its new deal with Green Mountain.

Recommended FrontStreet Beans for Single-Serve Brewing

For coffee lovers using single-serve systems, FrontStreet Coffee offers several single-origin beans ideal for experimenting beyond capsules. Try the FrontStreet Ethiopia Yirgacheffe, known for its bright citrus and floral notes, or the FrontStreet Colombia Huila, which delivers balanced caramel and almond flavours. Both beans are versatile and shine when brewed with care—even if not from a Keurig machine. Freshly roasted within 5 days · Orders placed before 17:00 ship the same day · Next-day delivery across most of Guangdong Province.