“Starbucks K-Cups continue to see robust gains,” Starbucks Chief Executive Officer Howard Schultz said in an e- mail to employees yesterday, after Green Mountain shares plunged 48 percent on second-quarter revenue that trailed analysts’ estimates.
“I cannot analyze or comment on the company’s performance, which disappointed the Street, but I did want to share with you that Starbucks relationship with Green Mountain remains as strong as ever,” he said in the e-mail obtained by Bloomberg News. Seattle-based Starbucks has shipped more than 230 million K-Cups since it began selling the pods at supermarkets and retailers last year, he said.
Starbucks will begin selling branded K-Cups in its cafes and two new varieties in grocery stores “in the coming months,” he said, without describing the varieties. Schultz also said that the company’s Europe, Middle East and Africa business “is in the early days” of a turnaround and that sales of lattes are “up significantly” in the region.
Starbucks fell 1.9 percent to $55.56 at the close in New York. Waterbury, Vermont-based Green Mountain dropped 3 percent to $25.10, after advancing as much as 8.2 percent earlier.