Shares of coffee maker
Keurig Green Mountain Inc.
) hit a new 52-week high of $128.04 on Jun 17, 2014.
Keurig Green Mountain shares have been on the rise this year,
backed by several strategic alliances which should help it maintain
a leading position in the single-serve brewing category. The solid
business momentum of the business of the company helped it to yield
a solid year-to-date return of 67.8%
Last week, Keurig Green Mountain, signed a deal with the popular
coffee maker Nestle's U.S. division - Nestle USA. Per the
multi-year agreement, Nestle's Coffee-mate branded coffee with
creamer will be available in K-Cup packs that can be used on Keurig
Nestle USA will distribute the flagship Nestlé Coffee-mate 2 in
1 K-Cup packs (coffee combining roast and ground coffee with
creamer) in two flavors - Original and French vanilla. The Nestle
Coffee-mate K-cup packs will be available on the online shopping
sites of Keurig in fall 2014 and in grocery, mass and specialty
retail channels by spring 2015.
However, Nestle is not the only company with whom Keurig Green
Mountain has joined hands to increase its market share in single
serve coffee system. America's popular restaurant chain Subway also
joined forces with Keurig to widen the homemade single-serve coffee
options for Keurig users. Under the agreement, Keurig Green
Mountain's new K150 brewer series will be installed at nearly
30,000 Subway restaurants across the U.S.
Earlier this year, Keurig Green Mountain and Italy's coffee
company Luigi Lavazza SpA inked a multi-year agreement to offer the
latter's flagship coffee Lavazza in K-Cup packs for Keurig
Other then these new agreements, Keurig Green Mountain already
boast of similar strategic distribution agreements with huge names
Dunkin' Brands Group Inc.
). Keurig Green Mountain produces coffees, teas and other hot
beverages which are sold in K-Cup and Vue portion packs. These
portion packs can be used on its single-serve Keurig brewers for
making hot beverages.
Investors are encouraged by these initiatives which further
Keurig Green Mountain's goal of sustaining its dominance in the
single-serve brewing market even after the expiry of its K-cup
patents in Sep 2012. Through these agreements, the coffee maker is
aligning with the strongest beverage brands to support a range of
consumer choices and taste profiles under the Keurig Single-Cup
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