Leading specialty coffee brewer and Keurig owner
Green Mountain Coffee Roasters Inc.
) will now be known as Keurig Green Mountain Coffee Roasters Inc.
to highlight both its main brands - Green Mountain coffee and
Management commented that the new name reflects the true
nature of the company and has helped to bring the two major
brands under one corporate identity. Shareholders approved the
new name last week at an annual meeting. However, Keurig Green
Mountain will retain its ticker symbol "GMCR" on the NASDAQ stock
Green Mountain offers coffee, tea as well as other beverages
like hot apple cider, cocoa and other dairy-based drinks.
Keurigis a pioneer and leading manufacturer of gourmet
single-cup brewing systems. It sells beverages produced through
'At Home' and 'Away From Home' channels.
Green Mountain acquired Keurig Inc. in 2006.Keurig sold the
brewers at a reasonable rate while the K-Cups - compatible only
with Keurig machines - were profitable. Post the merger, Green
Mountain's sales rose 65% and it secured a strong position in the
single brewing category.
Green Mountain has since then put a lot of focus on improving
its Keurig business unit. More than 80% of the company revenues
now comes from the sale of Keurig brewers and K-cup
Green Mountain Coffee aims to popularize the single-cup
brewing system in America and has signed several strategic
distribution agreements to rope in popular brands like
Dunkin' Brands Group Inc.
) into its portion pack systems.
To maintain its dominance in the single-serve brewing
category, Green Mountain also plans to launch Keurig 2.0 brewing
machine with an interactive readability technology that will work
only with licensed pods.
Moreover, Green Mountain is stepping into the world of cold
beverage and soda with the launch of 'The Keurig Cold Machine'.
The new machine will make sodas, sports drinks and other
beverages at the touch of a button. Like its coffee machines, the
cold machine would use pods to make a variety of drinks.
Recently, the coffee major inked a 10-year partnership deal
with the beverage giant
The Coca Cola Co.
), whereby Green Mountain will exclusively make Coca-Cola branded
pods for use on its Keurig Cold at-home beverage system.
Coca-Cola will also work with Green Mountain on the development
and launch of this latest version of Keurig single-cup
We feel the new name which emphasizes the Keurig connection
will serve multiple purposes for Green Mountain which currently
carries a Zacks Rank #4 (Sell). First, it shows its determination
to maintain its dominance in the single-serve brewing system
market. Second, the new name will help the company to woo other
powerful brands into signing distribution agreements for serving
their beverage brands in Green Mountain's K-cups.
DUNKIN BRANDS (DNKN): Free Stock Analysis
GREEN MTN COFFE (GMCR): Free Stock Analysis
COCA COLA CO (KO): Free Stock Analysis Report
STARBUCKS CORP (SBUX): Free Stock Analysis
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