Consumers will be able to brew cold beverages such as sodas, iced teas and iced coffees with the product, which will be available at stores in major markets in the next two weeks, Bloomberg reports.
Keurig shares are down 60% this year through Monday as K-cup demand wanes amid greater competition, and the company hopes the Kold brewer can revive growth by expanding Keurig's offerings, according to Bloomberg.
Coca-Cola (KO) - Get Report is the Kold brewer's biggest investor, with a 17% stake, and company executives have said they hope to sell "hundreds of thousands" of Kold brewers to compete with companies such as home carbonation producer SodaStream (SODA) - Get Report , Bloomberg adds.
"We're expanding from one beverage occasion," Keurig CEO Brian Kelley told Bloomberg. "This product allows us to expand to all other day parts."
Keurig Green Mountain, based in Waterbury, Vt., is a specialty coffee and coffeemaker business in the United States and Canada that sells Keurig Single Cup Brewers and Arabica bean coffees.
Separately, TheStreet Ratings team rates KEURIG GREEN MOUNTAIN INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
We rate KEURIG GREEN MOUNTAIN INC (GMCR) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and feeble growth in the company's earnings per share.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- GMCR's debt-to-equity ratio is very low at 0.15 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.04, which illustrates the ability to avoid short-term cash problems.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Food Products industry and the overall market, KEURIG GREEN MOUNTAIN INC's return on equity exceeds that of both the industry average and the S&P 500.
- Net operating cash flow has slightly increased to $242.14 million or 5.20% when compared to the same quarter last year. Despite an increase in cash flow, KEURIG GREEN MOUNTAIN INC's average is still marginally south of the industry average growth rate of 8.54%.
- KEURIG GREEN MOUNTAIN INC's earnings per share declined by 22.3% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, KEURIG GREEN MOUNTAIN INC increased its bottom line by earning $3.74 versus $3.16 in the prior year. For the next year, the market is expecting a contraction of 8.6% in earnings ($3.42 versus $3.74).
- Looking at the price performance of GMCR's shares over the past 12 months, there is not much good news to report: the stock is down 58.28%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
- You can view the full analysis from the report here: GMCR