Starbucks Breaks Into Single-Cup Coffee Machine Market

Get ready for a whole new opportunity to brew your own coffee. Starbucks Corp (SBUX.O) is now getting into the market with the Verismo coffee and espresso brewer. They are trying to get their hands on a piece of the single-serve market that is currently dominated by Green Mountain Coffee Roasters Inc. and Nestle SA.

At the moment, Green Mountain’s Keurig single-cup coffee machines control the market with over 75% of the US market. Netle’s Nespresso espresso makers have 35% of the market. Starbuck’s new machine will be made available in 4300 company stores starting tomorrow. It is already available online and through some other US retailers. The single-serve coffee market is an $8 billion market. It’s certainly not a surprise that Starbucks has gotten itself into this market – the only surprise is that it took them this long to do so.