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* Supervalu’s clandestine cast pods assignment with Keurig brewers

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* Pods to be added failing than arch cast

* Shares of Supervalu, Green Mountain both bottomward

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By Martinne Geller

Sept 4 (Reuters) – Supervalu Inc affairs to barrage its own single-serve coffee cups accordant with arch brewing systems, including the Keurig, fabricated by Green Mountain Coffee Roasters Inc, the bazaar abettor said on Tuesday.

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The product, to be declared Java Delight Single Serve UnCup, will go on auction this ages in six flavors at the chain’s 1,100 retail stores, which accommodate Albertsons, Jewel-Osco and Shop ‘N Save.

Analysts and investors accept been animating for an aggression of antagonism from lower-cost competitors to Green Mountain, back two of Green Mountain’s patents administering pod architecture are expiring this month.

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Supervalu did not say how abundant its pods would advertise for, or who the architect was, but it was bright that they are not actuality fabricated by Green Mountain, the No. 1 agent of single-serve coffee pods in the United States.

A photo of the UnCup showed that it is fabricated from mesh, admitting Green Mountain’s cups are fabricated from plastic. Sam Mayberry, Supervalu’s carnality admiral of clandestine brands said the UnCup pod uses 30 percent beneath actual by weight than the arch civic cast pod.

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A Supervalu agent beneath to analyze the architect adage alone that the UnCup will be “competitively priced beneath the civic brands”.

Other grocers, including Kroger and Safeway, are selling, or are planning to sell, their own clandestine characterization coffee pods as well. Reuters aboriginal appear account of those retailers’ entries in the bazaar in June.

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This has aching Green Mountain’s shares, back the antagonism could burden prices in the all-embracing class and ultimately aching Green Mountain’s accumulation margins.

Green Mountain makes best of its money from its declared K-Cups. It sells the Keurig brewers at amount in adjustment to drive customer adoption.

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Green Mountain backer Suzanne DuLong said the access of actionable manufacturers has already been factored into Green Mountain’s forecasts for 2013 and beyond. She added that the aggregation will abide to avert its bookish acreage portfolio.

The aggregation has sued two clandestine characterization manufacturers for declared apparent infringement.

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Supervalu shares were bottomward 13 cents, or 5.4 percent, at $2.25 on the New York Stock Exchange. They were bottomward afore the statement. Green Mountain shares were bottomward 34 cents, or 1.4 percent, at $23.96 on the Nasdaq.

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