Citing the company’s “passion and commitment” to offering customers “exceptional coffee and espresso beverages,” CEO Howard Schultz said:
We are applying that passion and commitment, once again, to the fastest growing segment of the coffee market, the multi-billion-dollar premium single cup segment, with the introduction of a breakthrough at-home Starbucks® coffee experience that is second to none. What we are bringing to market today has been impossible until now.
Unlike its competitors Green Mountain’s Keurig machines and Nestle’s Nespresso system, the Starbucks machine is capable of brewing both single-cup coffee and espresso. The new Verismo system will sell for $199, or $399 in a souped-up version. The newest Keurig coffee makers sell for around $250, and the Nespresso machines range in cost from $130 to $700.
Starbucks will continue its partnership with Green Mountain, supplying K-cups for the Keurig systems.
The single-cup coffee market is the fastest growing part of the coffee business and is worth about $8 billion globally, according to the Starbucks announcement.
Green Mountain’s shares are down more than 4% in premarket trading this morning at $29.35 in a 52-week range of $17.11 to $113.50.
Paul Ausick
Get Ready To Retire (Sponsored)
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Get started right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
