Starbucks wants to dominate the US single-cup coffee market

Starbucks, the US coffee chain, and Green Mountain Coffee Roasters,GMCR Coffee Co., Ltd., are aiming to dominate the single-serve coffee market in the United States. It is understood that the current size of the market is 4 billion US dollars.

As the world's largest coffee chain, the key to the partnership between Starbucks and Green Mountain Coffee means that it will control 80% of the North American single-cup coffee market. As a result, both rival coffee chains Peet's Coffee & Tea Inc and Kraft Foods Inc can only look and sigh, unable to shake the dominance of both.

Green Mountain shares surged 43 per cent on the news, while Starbucks shares rose 10 per cent, its biggest one-day gain since July 2009, while Peet's shares tumbled 14.6 per cent.

Under the agreement, Starbucks and Green Mountain Coffee will jointly sell small bags of Starbucks and Tazo tea brands that can be used in Keurig single-cup brewing systems in wholesale clubs, drugstores and supermarkets in North America this autumn. At the beginning of next year, Starbucks coffee shops will also sell Keurig coffee machines, Starbucks coffee and tea products.