Starbucks Corp said coffee packets under its brand for Green Mountain Coffee Roasters Inc's single-serve Keurig coffee machines will be sold in U.S. grocery and specialty retail stores from November, in time for the key holiday season.

Starbucks also said it plans to grow its sales of K-Cups -- small plastic packets filled with coffee beans -- to $1 billion over time.

In March, Starbucks and Green Mountain signed a deal to sell Starbucks branded K-Cups.

Starbucks said its K-Cups will also be sold in Canada from March next year and plans to sell them at its retail stores in North America starting sometime in 2012.

Green Mountain dominates the fast-growing $4 billion U.S. single-serve coffee market with its sleek Keurig machines that brew individual cups of coffee. The machines have grown in popularity in recent years as many people find them easier to use than drip coffee makers.

(Reporting by Mihir Dalal in Bangalore; Editing by Viraj Nair)

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