Starbucks Corporation (SBUX), Green Mountain Coffee Roasters Inc. (GMCR): Acquisitions and Partnerships Make This Company a Great Investment

Starbucks Corporation (NASDAQ:SBUX) has signed an agreement with Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR), which includes a five year partnership extension between both the companies. The deal includes manufacturing, marketing, distribution, and sale of Starbucks and Tazo-branded single serve packs for use in Green Mountain’s Keurig single serve machines across the globe. The partnership started in March 2011, and since then, Starbucks has shipped more than 860 million Starbucks brand K-Cup packs.

The agreement in the past has improved revenue of both the companies’ in the past and has been a major boon for Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR)’s stock, which has appreciated well in the last couple of years since the partnership started. Coffee being a $30 billion industry in the U.S., and with people preferring convenience of one-time, ready to make coffee, both companies will benefit in the future too.

Bottom line

Starbucks Corporation (NASDAQ:SBUX) has evolved itself into a chain that has a lot to offer other than just coffee. The product offerings are also strategic, complementing one or the other products well, thus enhancing revenue. I believe strongly that the coffee giant is destined to grow and benefit its investors, but my only concern at the moment is that it is already trading at its all time highs. So, if the stock experiences any correction, it will be a better opportunity to buy than now.

pranay agrawal has no position in any stocks mentioned. The Motley Fool recommends Green Mountain Coffee Roasters and Starbucks. The Motley Fool owns shares of Starbucks.

The article Acquisitions and Partnerships Make This Company a Great Investment originally appeared on Fool.com.

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