This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Green Mountain Coffee Goes After Affluent Customer

Stocks in this article: GMCR

The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.

NEW YORK ( Trefis) -- Green Mountain Coffee Roasters (GMCR) is launching Vue, a new single-serve coffee maker, in an effort to attract more affluent customers.

Vue will be priced at about $250 which is more than twice the price of a traditional Keurig brewer. The newly launched brewer has additional features that could adjust water pressure, timing and airflow to brew different ways and also includes separate dairy frother packs for adding foam.

GMCR is expected to start selling Vue in the next few weeks. GMCR faces stiff competition from Nestle, Mars, Kraft (KFT) and Philips Electronics (PHG), among others.

See our full analysis of Green Mountain Coffee Roasters here.

Single-serve coffee formats, a category that was in the nascent stage approximately five years ago, now accounts for 7.5% of the U.S. retail. The single serve market has been a major growth driver of the overall coffee industry in the U.S.

According to a recent study by National Coffee Association of USA, the penetration in the single-serve space is growing at an average of 1% per year for coffee sales, according to Packaged Facts.

In the near future, GMCR is expected to face stiff competition from Wal-Mart (WMT) as the latter is planning to introduce a more reasonable line of brewers at its stores. Going by reports, the price per serving is expected to be much lower than the average cost of Keurig's K-Cups, which range from 60 cents to 90 cents each.

GMCR is focusing on innovation in order to maintain its dominant position in the once nascent single-serve market. It is currently working with Lavazza to co-develop a new single serve espresso machine for North American consumers that would complement its Keurig single cup brewers. It is expected to be a direct competitor to the Nespresso machines by Nestle.

With GMCR's patents on the K-Cup coffee packs due to expire in September this year, it becomes all the more important for GMCR to keep innovating in order to stay ahead of competitors.

Click here to find out how a company's products impact its stock price at Trefis.

Like our charts? Embed them in your own posts using the Trefis Wordpress Plugin.

This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs