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LBP to sell Keurig-compatible coffee packages

By Martinne Geller

September 6, 2012

(Reuters) - LBP Manufacturing Inc, a supplier of packaging to coffee chains including Starbucks and Dunkin' Donuts, will soon sell filters for single-serve coffee, another move in the expected onslaught of competition for Green Mountain Coffee Roasters Inc.

Matt Cook, president of the privately held company, said the product, called the UpShot, will launch in the fall. He declined to identify the brands that will use LBP's technology, saying it was premature.

Cook said the UpShot would be recyclable and could be tailored to the needs of customers, which could range from private label manufacturers of single-serve coffee cups to other coffee brands not yet selling single-serve portions.

The U.S. market for single-serve coffee is dominated by Green Mountain and its Keurig system, but the expiration this month of certain patents related to the design of its "K-Cups" has opened the door to a host of lower-cost competitors.

TreeHouse Foods, which manufactures foods and drinks that retailers brand as their own, said separately on Wednesday that the company was on track to enter the single-serve coffee market in the fourth quarter.

Supermarket operator Supervalu said on Tuesday that it would launch this month its own brand of coffee in single-serve portions, following similar moves from rivals Kroger and Safeway.

Market leader Green Mountain has said that the anticipated entry of unlicensed competitors is factored into its forecasts and that its broad product range would continue to drive sales.

It also says that it plans to continue protecting its patents. The company, whose stock price has been hammered by concerns about the sustainability of its profit margins, has already sued two manufacturers of Keurig-compatible coffee cups for patent infringement.

LBP's Cook said he was "extremely comfortable" with the UpShot product, and its position in the marketplace.
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(Reporting By Martinne Geller in New York; Editing by Tim Dobbyn)

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