Is a Starbucks-Green Mountain Partnership in the Works?
Speculation is mounting that Starbucks and Green Mountain Coffee Roasters could announce a new partnership in the single-cup brewing market. Is this a good idea or should Starbucks launch its own home-brewing machine? Vote in our poll and see what readers of TheStreet think.
Van Winkle reiterated a buy rating and $50 price target on Green Mountain, and estimated that "earnings-per-share can exceed $1 for each 5% market penetration, with a 25% household penetration looking achievable." JPMorgan analyst John Ivankoe noted in December that "such a product will be incremental to Starbucks' store sales and could easily be a $1 billion revenue opportunity for Starbucks in the U.S. alone." Indeed, Starbucks' Wyss likened the coffee company's plans to penetrate the single-cup coffee brewing market to the impact Apple's ( AAPL) iPhones had on the smartphone market. She told the newswire that Starbucks' options include new partnerships, expansions of its Via instant coffee line or sales of single-cup brewers in its retail outlets. "We don't have any specific announcements at this time ... but should have information in the near future," she said. With all this in mind, what do you think? Is a Starbucks-Green Mountain partnership a good idea or is the coffee chain better off launching its own single-cup brewing machine? Vote in our poll and see what readers of TheStreet think. -- Written by Miriam Marcus Reimer in New York. >To contact the writer of this article, click here: Miriam Reimer. >To follow the writer on Twitter, go to http://twitter.com/miriamsmarket. >To submit a news tip, send an email to: email@example.com.