Starbucks to Sell Single-Serving Coffee Machines
Starbucks said Thursday it will soon sell a single-cup coffee machine that lets people brew lattes and other coffee drinks at home.
The Seattle-based coffee chain says the Verismo will go on sale online and at some Starbucks cafes this fall. It's keeping the price of the machine a mystery for now.
Starbucks first entered the single-serve market with its Via Ready Brew instant coffee in 2009, and it started selling K-Cup packs for Green Mountain Coffee's Keurig single-cup machines in November.
A Starbucks representative said the new machine "fulfills a different consumer need" from the K-Cup packs.
Shares of Green Mountain Coffee Roasters nevertheless tumbled in after-hours trading, while Starbucks shares rose. (Click for the latest quotes.)
In trading on Friday, Starbucks' shares rose slightly while Green Mountain Coffee stock dropped sharply.
Starbucks says its Verismo machine and coffee and milk pods are being developed in partnership with Krueger GmbH & Co, a privately-held German company. The machine will be able to make espresso drinks as well as brewed coffee.
Starbucks CEO Howard Schultz says the $8 billion dollar premium single-cup segment is the fastest growing part of the global coffee industry.
Schultz has said in the past that Starbucks' packaged-goods business could one day rival its cafe business. A key component of that will be increasing the company's single-serve coffee sales in the United States.
Starbucks stock, which had traded between $33.72 and $49.52 the past year, rose 88 cents in regular trading to close at a new 52-week high of $50.37.