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Starbucks and Kraft Divorcing

Read How the Coffee Wars are Brewing New Products and Distribution


Starbucks and Kraft Divorcing

Single Cup Brewers from Tassimo


Kraft thinks they might try to expand the Maxwell House brand to include more premium lines. I think that is a stretch. A brand only has a certain amount of believability or credibility with the consumer so I think they should think about what they learned with their 11 year success with Startbucks and try to partner with another brand OR create a new brand in the premium sector.

Starbucks wants to terminate the agreement claiming Kraft has not done enough to grow the brand. Well, $500 million is a lot of sales, however they were claiming poor shelf positioning and out of stocks. Could be but I believe Starbucks might have learned enough about the retail grocery sector to feel it can manage the brand internally. When they launched Via, their premium instant coffee they went to one of the largest food brokers in the country, Acosta Sales & Marketing. Fox Business News stated that Acosta will work with Kraft on developing sales strategy for ALL retail products commencing March 2011. Food brokers work with most brands you see in the store calling on retail buyers, setting up promotions and maintaining product on the shelf..

PFSK also reported that the Seattle's Best brand has something called the Seattle's Best Level System. Really simple, the higher the number the bolder the flavor; they use a 1 through 5 rating. Seattle's Best Level System makes it really easy for the consumer to decide on their purchase. Hey, this is marketing 101; make it easy for the consumer to buy!

The coffee battle's are brewing, sorry had to get that one in! Coffee is everywhere in every possible size, flavor and quality. What's in your cup?

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