Analyst Keith Siegner noted that the Starbucks-Green Mountain deal represents an example of extremely high-return potential with very low risk for the Seattle company to leverage its brand equity.
The partnership also adds weight to Green Mountain's Keurig platform, already the leader in the at-home and in-the-office single-cup brewing market.
Moreover, Starbucks committed very little capital to the deal and retained a fair amount of flexibility to continue to pursue other single-serve opportunities.
With the Starbucks-Kraft partnership now officially expired, Siegner said market watchers will look to Starbucks' second-quarter results for a pickup in comparable same-store sales, better margins and further clarification on its post-Kraft packaged coffee business.
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