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

Just the hot list include
Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 32,627.97 -234.33 -0.71%
Nasdaq 13,215.24 99.07 0.76%
S&P 500 3,913.10 -2.36 -0.06%
Treasuries 1.73 0.00 0.12%
Data as of 6:29am ET
Company Price Change % Change
Ford Motor Co 8.29 0.05 0.61%
Advanced Micro Devic... 54.59 0.70 1.30%
Cisco Systems Inc 47.49 -2.44 -4.89%
General Electric Co 13.00 -0.16 -1.22%
Kraft Heinz Co 27.84 -2.20 -7.32%
Data as of 2:44pm ET
Sponsors

Sections

Bankrupt toy retailer tells bankruptcy court it is looking at possibly reviving the Toys 'R' Us and Babies 'R' Us brands. More

Land O'Lakes CEO Beth Ford charts her career path, from her first job to becoming the first openly gay CEO at a Fortune 500 company in an interview with CNN's Boss Files. More

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.