Green Mountain Coffee Roasters, Inc
) recently announced a deal with beverage company
Dr Pepper Snapple Group
), by virtue of which the latter's ready-to-drink iced tea,
Snapple, can be made on the former's Keurig single cup brewing
The Snapple iced teas will be available in Green Mountain's
K-Cup and Vue packs, which can be prepared on its Keurig brewers.
The Snapple K-Cup packs will be available across U.S. and Canada
starting the spring of next year. Soon thereafter, the Vue packs
are scheduled to hit the markets.
Early this month, Green Mountain launched its new Keurig Vue
coffee brewer model - Keurig Vue V600, at a discounted price. Green
Mountain, which was until now enjoying a dominating position in the
U.S. market with its innovative Keurig Single Cup brewing
technology, is facing increased competition from rivals like
) latest premium single cup domestic coffee machine, Verismo. The
machine is available at the company's website, Verismo.com, and is
expected to be available in company stores and at certain specialty
retailers from this month. Verismo has increased the competition
for Keurig, as a Verismo coffee machine is priced at a much lower
level from the high-priced Keurig brand. Lower-priced models like
Vue V600 and the Snapple deal are aimed to protect from losing
share to Verismo in future.
Green Mountain holds a Zacks #4 Rank, which implies a short-term
Sell rating. On a long-term basis too, we have an Underperform
recommendation on the stock due to competitive pressures from
DR PEPPER SNAPL (DPS): Free Stock Analysis
GREEN MTN COFFE (GMCR): Free Stock Analysis
STARBUCKS CORP (SBUX): Free Stock Analysis
To read this article on Zacks.com click here.