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Dunkin' Donuts has signed a deal with Procter & Gamble to put its xoffe on grocery-store shelves, where bagged Starbucks has been a growth machine in recent years.
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This sentence is saying that bagged Starbucks coffee sold in stores has been very popular the past few years. Dunkin' Donuts made a deal with the company Procter & Gamble so their coffee can be sold in stores too, presumably to make money off of this trend.
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Robin, I agree with you that the sentence is confusing.
I think it should read: "... where bagged coffee from Starbucks has been a growth machine in recent years" . Obviously, the word "coffee" was missing, since it is the coffee which is bagged, and what has been such a growth machine for Starbucks
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