Kraft signs deal with Costa Coffee on Tassimo

Northfield-based Kraft Foods Inc. said Friday that it signed a deal that will allow Costa Coffee stores to sell its Tassimo single-cup coffee machines in the United Kingdom and make Costa beverages available using the machines.

The Tassimo machines and Costa cappuccino, latte and Americana single-serve discs will be available in Costa stores in the southwest of England starting in May. They will go on sale across all of the U.K. in the fall.

Terms were not disclosed. Costa has more than 2,000 stores in 25 countries.

A variety of brands, including Jacobs, Kenco and Gevalia coffee, Milka and Cadbury hot chocolate and Twinings teas are already available via the Tassimo machines.

“We're stepping up our efforts to win in the retail on-demand coffee segment, and this new agreement with Costa is an example of that,” Hubert Weber, president of coffee for Kraft Foods Europe, said in a statement.

Kraft, which is based in Northfield, Ill., is expected to split into two publicly traded companies this year. The split is intended to help drive growth by sharpening the focus of its business units on particular brands. The North American grocery brands will continue to carry the Kraft name and cover brands like Oscar Mayer meats and Maxwell House coffee. The other company will be called Mondelez International Inc. and focus on snack brands like Cadbury chocolates and Trident gum.

Kraft shares finished at $38.20 on Thursday, near the top end of their 52-wek range of $31.88 to $39.06.