Just weeks after losing its contract to distribute Starbucks coffee in grocery stores, Northfield-based Kraft Foods announced that it is prepping a successor, Gevalia.
Gevalia, a premium brand that has only been available by mail order in the U.S., is a $400 million global business, the company said. Products will be available in supermarkets, club stores and other stores by the beginning of August. In June, Kraft will also begin selling Gevalia T-disks for its Tassimo machine.
The initial slate is comprised of Gevalia’s 10 most-popular products, including its traditional roast, house blend, French roast, vanilla, espresso roast, chocolate mocha, and Colombia. The traditional roast and French roast varieties will also be available in whole-bean form.
“Gevalia is known and loved by millions who’ve purchased it online,” Domenic Borrelli, vice president of its U.S. coffee unit said in a statement. “We’re telling retailers the good news now. And, we’re confident the convenience of being able to purchase Gevalia in stores will attract and delight an entirely new audience.”
While Gevalia was the obvious choice to succeed Starbucks as Kraft’s premium-priced coffee in grocery shelves in the short term, ample speculation remains that the package-food giant may still be interested in licensing another premium coffee brand in the U.S. Kraft has a $5 billion coffee business globally, but its European brands like Carte Noire and Jacobs have little recognition here.
“This is the right step for us in the U.S. premium category,” Borrelli said. “Kraft Foods knows coffee –- it’s in our DNA. By tapping into our global coffee pipeline, we’ll have more products and innovations to come. We intend to continue to win in the coffee category in the U.S.”
eyork@tribune.com
If Kraft knew so much about coffee then why has Starbucks gone elsewhere?
This is all about trying now to push Starbucks out of grocery stores by holding onto the shelf spot with another brand. My bet is stores drop Kraft first.