A Shotgun Wedding For Starbucks

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Starbucks (SBUX) is not doing very well selling convincing investors that coffee sales in its stores are rising at an acceptable rate. The company’s stock is down 22% this year.

So, the coffee retailer has begin to flog its sales in grocery stores hoping that this will give a boost to overall revenue.

That program just got a big push. Kraft (KFT) will start to sell Starbucks coffee as part of the line of products that can be brewed in its "Tassimo" home brewing machines. According to the FT: "This is the first time that Starbucks, which has contracted Kraft to distribute its packaged coffee in supermarkets, has sold coffee under the Starbucks brand name for use in home coffee machines."

Starbucks may not be able to kept competitors like McDonald’s (MCS) and Dunkin Donuts from stealing their retail foot traffic. But, at least those companies are not selling prepackaged products. Yet.

Douglas A. McIntyre