After being long-time partners in the distribution of Starbucks coffee to retail stores, the two finally ended their partnership last March. Kraft is now focusing on the retail marketing of its Gevalia coffee. The coffee label, which was previously sold only to the Unites States through online marketing and delivered directly to consumers, will now be available in retail stores around the country.
Gevalia is widely popular in its home country Sweden and has worldwide revenues of around $400 million annually. It is also Kraft’s best-selling brand coffee for the Tassimo one-cup brewing system.
Kraft is planning to achieve or even surpass the sales of their formerly distributed coffee product, the bagged Starbucks coffee. Domenic Borelli, vice president of coffee for Kraft in the U.S., did not give out an exact timeframe as to when this goal will be achieved. Retailed Starbucks coffee previously made about $500 million every year when it was still handled by the partnership of Kraft and Starbucks.
According to Borelli, the company’s focus is on making consumers be aware of Gevalia, as quickly and as soon as possible. As Gevalia has already proven itself in the field of direct selling, the company’s mission is to achieve or surpass its direct sales success when it comes to retailing.
Gevalia coffees (ground, decaffeinated, whole bean and flavored) will be available in U.S. retail stores in August of this year.