Keurig, Starbucks revise pact

Investor's Business Daily

The coffee giants amended their 5-year agreement under which Starbucks (SBUX) sells Keurig Green Mountain's (GMCR) K-Cup single-serve coffee packs. Starbucks gave up its exclusive license to high-end Keurig pods in exchange for access to a wider array of K-Cup pack offerings. The deal is seen as part of a larger strategic move by Keurig to open up competition among partners on the premium end of its line, while giving them a broader assortment of coffees. Keurig Green Mountain shares rose 6.7% to 113.25. Starbucks fell 0.2% to 74.27.

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