Starbucks Deal With Kraft Costs It Potential Grocery Store Sales

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Starbucks Corp., the world’s largest coffee chain, will miss out on a surge in home-brewing unless it can break a 13-year-old deal that ties its fortunes to Kraft Foods Inc.’s slow-selling Tassimo machine.
Under the terms of the deal, Starbucks can’t put its coffee in the Keurig Home Brewer, according to a complaint from Kraft filed in federal court in White Plains, New York. Kraft’s brewing system has 2.6 percent of the grocery market; Keurig, which dominates the U.S. market for machines that make single cups of coffee in a minute or less and is owned by Green Mountain Coffee Roasters Inc., has 71 percent.

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