In order to reach out to more consumers, coffee maker
Green Mountain Coffee Roasters Inc.
(
GMCR
) has launched its new Keurig Vue coffee brewer model - Keurig Vue
V600, at a discounted price of $209.99. Green Mountain's new Vue
V600 is the latest addition to the Keurig Vue Brewing System. This
affordable model includes some of the most popular features such as
auto on/off, strength, temperature control, energy saver mode and
size selection. Apart from V600, the Keurig Vue Brewing System has
provided its customers with advanced brewing options in the form of
its Vue 700 machine, recently made cheaper at $229.99 from $249.99
previously.
Green Mountain, which was until now dominating the U.S. market
with its innovative Keurig Single Cup brewing technology, is facing
increased competition from lower-cost rivals like
Starbucks Corporation's
(
SBUX
) 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 this month.
The Verismo single cup coffee machine is a major step by the
company to take a share of the premium single-cup segment, which is
the fastest growing market in the coffee industry. 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 are aimed to protect from losing
share to Verismo in future.
Starbucks recently expanded its existing partnership with Green
Mountain. Per the deal, Starbucks will manufacture and sell
Starbucks-branded Vue packs to be used on Green Mountain's newly
introduced Keurig Vue single-cup machines starting this fall.
Starbucks already sells the K-Cup packs to Green Mountain to run on
other Keurig Brewers.
Founded in 1981 and based in Waterbury, Vermont, Green Mountain
holds a Zacks #3 Rank, which implies a short-term Hold rating. On a
long-term basis, we have a Neutral recommendation on the stock.
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