• April 20, 2012

Kraft Foods has inked a deal with Costa Coffee, the world's second-largest coffee-shop chain, in which Costa's U.K. retail locations will sell Kraft's Tassimo on-demand brewing systems, along with single-serve T discs of Costa Cappuccino, Latte and Americano coffees.

Kraft described the agreement as another step toward its goal of making Tassimo Europe's leading single-serve beverage system.

The Tassimo machines and Costa T discs will be available in Costa outlets in the southwest of England beginning next month, and in Costa outlets throughout the U.K. by the fall.

Costa has more than 2,000 coffee-shop locations across 25 countries.

Tassimo brewers, which are manufactured by BSH Bosch and Siemens Home Appliances, read each T disc to brew the specific drink at the touch of a button.