Starbucks announces that it will continue to cooperate with Luoshan Coffee.
Starbucks recently announced a five-year contract with Green Mountain Coffee to continue to supply Starbucks coffee capsules to Keurig capsule machines produced by Green Mountain Coffee, as well as more Starbucks affiliated brand capsules, including Seattle`s Best Coffee, Torrefazione Italia coffee, Teavana Teas and so on.
CNBC reported that Starbucks CEO Howard Schultz said that in March Starbucks sold more than 75% more capsules to Keurig coffee machines than in the same period last year. Howard Schultz said the new contract with Green Mountain Coffee will allow Starbucks coffee capsule products to move out of North America and into overseas markets.
The relationship between Starbucks and Green Mountain Coffee is both enemy and friend. At the end of last year, Starbucks launched Verismo, officially entering the capsule coffee machine industry against Green Mountain Coffee. Users of Keurig capsule coffee machine can choose different brands of coffee capsules, such as Timothy`s World Coffee, Van Houtte, Caribou Coffee and so on.
At the same time, Green Mountain Coffee released its results for the second quarter of the fiscal year after US stocks opened on the 8th. Revenue rose 14% to $10 and the industry's earnings per share rose to 93 cents, thanks to strong sales of coffee capsules. Shares in Green Mountain Coffee rose 16.24% to 69.14 in after-hours trading, boosted by a bright surplus and a continued Ledo partnership with Starbucks.
Reporting by Chen Ling, a lean journalist
(responsible Editor:)
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