Analysis: Starbucks deal with Keurig looks like a win-win

|About: Starbucks Corporation (SBUX)|By:, SA News Editor

The new deal signed by Starbucks (SBUX -0.1%) with Keurig Green Mountain (GMCR +3.7%) is a bet on the power of its brand, say analysts.

The company is opening up competition on the premium end while giving itself a wide variety of K-Cup products it can offer to consumers.

The road for new K-Cup players gets a little trickier with the super-premium category a tough place to grab market share and Starbucks now a force at differing price points.

For Keurig, an increase in K-Cup volume and more competition on the high-end could be a boost.