Green Mountain Coffee Roasters Inc.
) has come up with a new flavor for its Keurig customers. They
can now brew creamy, spicy pumpkin lattes in their brewers. The
launch of Pumpkin Spice Latte marks the onset of the pumpkin
season and is the first seasonal beverage offered in a Vue pack.
With the Pumpkin Spice Latte, Green Mountain has forayed into the
world of latte products. The limited edition drink available in K
Cups and Vue packs (portion packs used with Keurig Vue brewers)
can be brewed exclusively in the Keurig Vue Brewers.
The coffee giant has introduced Pumpkin Spice Latte at select
stores nationwide. Vue Brewers are high-end brewing systems
manufactured by the Keurig business unit of Green Mountain which
allow consumers to choose the strength, amount and the degree of
hotness or coldness of freshly brewed coffee, tea and other
The product is accompanied by the return of Pumpkin Spice
seasonal coffee in bags, K-Cup and Vue packs online and in stores
The Pumpkin Latte has strengthened the already-rich brand
portfolio of GMCR's coffee, tea and other beverages which boasts
brand names like Green Mountain Coffee, Tully's Coffee, Diedrich
Coffee, Van Houtte, Timothy's World Coffee brand and others. The
popular flavor is expected to boost Green Mountain's sales in the
However, Green Mountain is not the first coffee producer to
offer pumpkin spice flavor to its fans. Coffee biggies like
), Maxwell House of
Kraft Foods Group Inc.
) and Dunkin Donuts of
Dunkin Brands' Group Inc.
) are already offering the popular flavor which is a big hit
among the customers during the fall. We feel that the new product
of Green Mountain will face stiff competition from these products
offered at other cafes. However, the new latte coming with the
convenience of a Keurig brewer will provide an edge to Green
Mountain over the other products available in the nation.
Management believes that there are ample opportunities of
expanding its Keurig system in the domestic market. The Zacks
Rank #1 (Strong Buy) company has raised its outlook for fiscal
2013 to reflect the strong momentum of its Keurig business unit,
when it reported its third quarter 2013 results last week. Green
Mountain expects its adjusted earnings per share in the range of
$3.19 to $3.24, up from the prior guidance of $3.05 to $3.15. It
represents a solid growth rate of 37% to 39% from the previous
year earnings results.
The company expects net sales growth in the range of 13%-14%
over fiscal 2012 compared to 11%-14% as announced previously.
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