I think that this was a brilliant idea for Green Mountain Coffee, owners of the Keurig, to start selling Starbucks coffee as options for their product. At this point in time, I would have to think that sales of Keurigs make up a huge percentile of Green Mountain’s revenue. By selling Starbucks coffee, they are only going to increase such sales. While coffee sales are undoubtedly a successful operation of Green Mountain, I’m sure they don’t mind sacrificing a decline in their coffee sales for a major increase in their Keurig sales. After all, I’m sure the profit ratio for Keurig sales is much higher than for their coffee.
If anyone is to be hurt in this deal, I feel as though it would be Starbucks. Keurigs are becoming more and more popular in households as pricings are steadily decreasing. Before you know it, coffee pots will be a thing of the past and Keurigs will be the new standard. By selling Starbucks coffee in Keurig packages, Starbucks risks the amount of customers they will receive in stores. That being said, Starbucks has sold their coffee grounds for some time now and it hasn’t seemed to hurt their business at all. I think that this has become a great partnership for both companies and I see it being very successful.
