Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Starbucks coming to 500,000 hotel rooms

By Ben Rooney, staff reporter


NEW YORK (CNNMoney) -- Starbucks said Tuesday that it will begin offering ground coffees for use in hotel room brewers as part of a plan to expand its presence in the "single-serve" market.

The Seattle-based coffee chain said it has entered an agreement with Courtesy Products, maker of the CV1 in-room brewed coffee system, a single-serve machine that uses disposable "filter packs."

Under the agreement, Starbucks will provide ground coffee for use in the CV1, which is installed in some 500,000 "luxury and premium" hotel rooms across the United States, according to a joint press release.

The announcement comes as Starbucks looks for ways to increase its exposure to the premium single-cup market, which it defines as single-serve beverages that cost more than 50 cents per serving.

Starbucks said the single-cup segment could also include coffee pods or capsules, which could be sold for use in brewing systems.

But the company has declined to comment on speculation about a potential partnership with Green Mountain Coffee Roasters (GMCR), the dominant player in single-service brewing machines.

"The single-serve coffee category in the U.S., and much of the world for that matter, is in its beginning stages of development," said Jeff Hansberry, president of Starbucks consumer products group, in a statement.

Echoing previous statements, Hansberry said it's too soon to say which single-serve format or machine Starbucks will pursue. But he suggested that the company is close to a decision.

"Look for further announcements from Starbucks as we continue to expand our presence in the premium single-serve category," he said.

Starbucks (SBUX, Fortune 500) made its first foray into single-service coffee last year when it launched its Via brand of instant coffee, which sells for about $1 per serving. Via has generated over $180 million in sales since it came on the market in over 50,000 locations globally, the company said. To top of page

Index Last Change % Change
Dow 17,651.26 -99.65 -0.56%
Nasdaq 4,725.64 -37.58 -0.79%
S&P 500 2,051.12 -12.25 -0.59%
Treasuries 1.78 -0.02 -0.89%
Data as of 7:31pm ET
Company Price Change % Change
Bank of America Corp... 14.13 -0.23 -1.60%
Freeport-McMoRan Inc... 11.80 -0.21 -1.75%
Apple Inc 94.19 -0.99 -1.04%
Micron Technology In... 10.00 -0.36 -3.47%
General Electric Co 30.07 -0.56 -1.83%
Data as of 4:01pm ET
Sponsors

Sections

Tesla CEO Elon Musk had said previously that the automaker would become "cash-flow positive" this year. But in a letter to shareholders Wednesday, Musk signaled that won't be the case after all. More

The jobs market is near full employment with 14 million jobs added since early 2010. Gas prices are cheap. Home prices are rising. The stock market is near record highs. So why does everyone think the economy stinks? More

Oakland-based tech startup Clef hosts dinners for the local community in a bid to resist gentrification and unite all types of industries that make up the city. More

Visa says new software will allow consumers to check out with chip cards as fast as swiping a card with magnetic strip. More