Starbucks (SBUX +1.8%) says it will offer a 2-for-1 deal on K-Cup packs this weekend in another...


Starbucks (SBUX +1.8%) says it will offer a 2-for-1 deal on K-Cup packs this weekend in another indication that the company plans to see its Verismo machine and pods make K-cups obsolete in the future. The heat is now on Green Mountain Coffee Roasters (GMCR +5.4%) to make a strong play of its own to stop Verismo from building up too much momentum in front of the holiday season.
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Comments (15)
  • Yaron Ron Reuven
    , contributor
    Comments (451) | Send Message
     
    it appears like SBUX is heading towards ending their relationship with GMCR and GMCR knows its, so they're trying to get rid of the SBUX inventory before official announcement is made.
    27 Sep 2012, 04:09 PM Reply Like
  • blackjava
    , contributor
    Comments (46) | Send Message
     
    Great make room for more K cups to be sold by GMCR
    27 Sep 2012, 04:12 PM Reply Like
  • alibabba
    , contributor
    Comments (60) | Send Message
     
    How is it going to make kcups obsolete? There are too many Kuerig machines out there, and more to be sold.
    27 Sep 2012, 04:14 PM Reply Like
  • josefbaikal
    , contributor
    Comments (33) | Send Message
     
    waiting for my verisimo machine to arrive. will write the review upon receipt. if it is the same as aldi in Australia GMCR has nothing to worry about. the pods are $1.00 double the price of Kcups.
    27 Sep 2012, 04:14 PM Reply Like
  • mwillems1
    , contributor
    Comments (14) | Send Message
     
    Hi Josef,
    1 capsule with Aldi in Australia costs Aud 0.37
    L'Or Espresso from DE Master Blenders was launched 2 weeks ago at Aud 0.60 per capsule (normal price)
    27 Sep 2012, 09:04 PM Reply Like
  • intech
    , contributor
    Comments (40) | Send Message
     
    Let's buy out ALL Sbux K cups @ 1/2 price

     

    What would Sbux earnings be ????
    27 Sep 2012, 04:34 PM Reply Like
  • HZLIU
    , contributor
    Comments (209) | Send Message
     
    It is such trend at SA that majortity of articles and SA commentaries are negatives on GMCR and majority comments by readers are positive or neutral. The articles most likely were contributed by hedge fund with short bias, with short interest 35%. The readers are individual investors who most likely are Keurig user. I don't see any real big hand here, like mutural fund, pension investor. They don't bother if it set for long term investment.
    27 Sep 2012, 04:43 PM Reply Like
  • markb
    , contributor
    Comments (579) | Send Message
     
    "Obsolete" comment by author just illustrates bias. My guess is SBUX simply doesn't have room in their stores for all the pre holiday Verismo stock (machines and pods) so they need to clear out some K's. Immaterial for GMCR. Would be more worried for SBUX...going forward everytime an espresso drinker goes into the store and sees Verismo its like a big sign saying "you can make the same stuff way cheaper at home sucker!"
    27 Sep 2012, 04:54 PM Reply Like
  • rphoff
    , contributor
    Comments (5) | Send Message
     
    Greed has a way of catching up with you SBUX
    27 Sep 2012, 05:41 PM Reply Like
  • Topcat
    , contributor
    Comments (579) | Send Message
     
    Verismo pods are so expensive...this is more of a high end market machine...I would like more volume in a k-cup, but even with amazon subscription discount or Costco the cheapest I ever get is about .40/k-cup.
    27 Sep 2012, 06:22 PM Reply Like
  • Kenneth Odean
    , contributor
    Comments (57) | Send Message
     
    Topcat is correct. It is a high end machine, so SB is trying to carve out a section of the market that always wants the best of everything. How long have folks been paying 3 to 4 bucks for their morning Joe at SB anyway. That proves that when it comes to coffee Americans want their coffee to be really good in the morning. It's like a culture thing with many of us. There's a lot of folks who have to have the best cars, or whatever, that will sign on and SB will have made their nitch. Then slowly work there way down into the mid range. Their trying to put their products in front of us anyway they can with all their new ideas and creations coming on board.
    I still think Panera has had it "their way" far too long and SB will soon have sandwiches and be a very similar lunch option to Panera. Don't believe me, Penney's was caught with their "pants down" by Kohl's and it took them idiots years to figure out how to react. It should have taken months not years. By then it was too late and now we have a glorified Target in Penny's. Hey, I got some great deals at the new Penny's, but will they rebound, depends on the economy, too many in the sector for anyone to take a strong hold.
    Look out Panera, tighten your belt real tight as it's been your way far too long.
    27 Sep 2012, 09:48 PM Reply Like
  • josefbaikal
    , contributor
    Comments (33) | Send Message
     
    received my machine last night. made one cup of coffee this morning. sorry starbuck but this machine is going back today. very noisy, water continues to drip after the process of making coffee is complete and the taste is just not there. no temperature adjustment. tried 3 different coffee pods including cafe latte. as i wrote before this is exactly the same machine as aldi sold for $AUS 79 in australia. no changes were made to this model. GMCR and Nespresso have nothing to worry about. get one yourself and try it. there is 60 days return policy if you order online.
    28 Sep 2012, 09:09 AM Reply Like
  • williasp
    , contributor
    Comments (377) | Send Message
     
    I continue to be surprised that everything SBUX does is viewed through the prism of GMCR killer. How strained is it to view SBUX promoting k-cup sales as a negative for GMCR? SBUX makes money on every sale of SBUX k-cups. Why would they want to kill the golden goose? Let's not read too much into a simple promotion.
    Thanks Josef for the feedback on Verismo. It will be interesting to see how well this product works and whether it is accepted by the consumer. Again, everyone has assumed it is the k-cup killer without knowing anything about it beyond the normal product intro hype. And while k-cups have been criticized for being too expensive, apparently the more expensive Verismo pods are "no problemo."
    Frankly, I don't see any businesses (barbershops, doctor's offices, car service waiting rooms, office break rooms) replacing their k-cup brewers and pods with more expensive espresso machines and pods. But those who view SBUX as GMCR killer refuse to see the logic here.
    28 Sep 2012, 10:53 AM Reply Like
  • HZLIU
    , contributor
    Comments (209) | Send Message
     
    Thanks josefbaikal. Just did little search. Starbuck Verismo 580 quite look alike older model of Aldi Expressi that started last year in Australia for A$79. Aldi Expressi come out a new version for 2013, sell for A$89, same function but smaller. You can compare Verismo and Expressi with the link. I bet both machines have same specification aside Aldi's new outlook. Both are Swiss engineered, mean both have to pay royalty to someone in Swiss. Both use 19-bar pressure, compared with 20-bar Nespresso.
    http://bit.ly/Q8mQQg
    http://bit.ly/S6dPeG
    28 Sep 2012, 11:57 AM Reply Like
  • intech
    , contributor
    Comments (40) | Send Message
     
    GMCR You can't loose if you have product to sell!!!

     

    We recently purchased GMCR VUE and K cups

     

    VUE was on back order as well as 50% of different K cups!!!!

     

    We also purchased Sbux Verismo (not impressive)

     

    Verismo CAN NOT compete against Vue!!!!
    29 Sep 2012, 12:19 PM Reply Like
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