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Starbucks (SBUX -2.1%) plans to ignite one its largest marketing campaigns ever to back the...

Starbucks (SBUX -2.1%) plans to ignite one its largest marketing campaigns ever to back the launch of the Verismo coffee/espresso machine. Though Green Mountain Coffee Roasters (GMCR +1.1%) backers cling to hopes the market is big enough for Keurig and Verismo brewers to both carve out profits, early reports from retailers suggest the tremendous demand for the new SBUX machine could create a "disruptive force." In addition to more intense marketing, Starbucks will also add demonstrations and sampling efforts at many U.S. stores leading up to Christmas, as well as 10K Verismo events at specialty retail stores selling the product.
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Comments (11)
  • blackjava
    , contributor
    Comments (46) | Send Message
    Terrific - can't wait to drink my GMCR Snapple Iced Teas from it......OH wait - i can't. LOL
    9 Oct 2012, 12:49 PM Reply Like
  • royalton
    , contributor
    Comments (2) | Send Message
    Would love to get a new Verismo....just as soon as the ridiculously high pod prices are reduced by 50%, or more. Until then, I will happily continue to use my Keurig and ignore SBUX's marketing campaign.
    9 Oct 2012, 12:49 PM Reply Like
  • GDW1
    , contributor
    Comments (69) | Send Message
    I don't know. Single machine to make drinks from their own coffee as opposed to a machine than can also make drinks from the same supplier, plus scores of others, including other non-coffee beverages. We'll see if the SBUX groupies who also want expresso turn the industry on its head and kill GMCR, but just don't see it.
    9 Oct 2012, 12:50 PM Reply Like
  • alibabba
    , contributor
    Comments (60) | Send Message
    From what I have seen, reviews for the Verismo machine have been quite negative. I don't see it as a competitive issue.
    9 Oct 2012, 12:56 PM Reply Like
  • elewisOK
    , contributor
    Comments (8) | Send Message
    You wish
    9 Oct 2012, 12:58 PM Reply Like
  • josefbaikal
    , contributor
    Comments (37) | Send Message
    more demonstrations of verissimo machines equals less sales.
    9 Oct 2012, 01:11 PM Reply Like
    , contributor
    Comments (21) | Send Message
    Also means lower margins.
    9 Oct 2012, 03:01 PM Reply Like
  • markb
    , contributor
    Comments (485) | Send Message
    SBUX is going all out to get Verismo into the hands of consumers before they realize GMCR/Lavazza has the better espresso machine. No serious espresso drinker is going to use freeze dried pod milk for a latte or cappicino. Lavazza's website says the new GMCR machine will be based on the highly successful A Modo Mio line of Lavazza machines. Each A Modo Mio has a steam wand. That means you can make a real cappicino: use your machine to make the espresso then steam your own fresh milk and add it. Yum. Just like Starbucks. Only cheaper. That's why SBUX is afraid of it.
    9 Oct 2012, 02:36 PM Reply Like
  • markb
    , contributor
    Comments (485) | Send Message
    Actually the timing of this whole thing is interesting. Lavazza made two investments in GMCR around $30/share, the most recent last month so they, as almost insiders, aren't worried. SBUX is preparing to do all the expensive legwork introducing the concept to consumers. If GMCR/Lavazza has the better machine its like SBUX is throwing up a nice lob pass and GMCR could dunk it. Now GMCR could screw up the execution or come out with an inferior machine, but they've been at this a long time and have a solid partner. A partner with worldwide distribution BTW.
    9 Oct 2012, 02:49 PM Reply Like
    , contributor
    Comments (212) | Send Message
    It is interesting that SA articles and its edited Market Currents pened more in negative tone on GMCR and more high on SBUX. The entry level Verismo costs $199, the exact same machine sold in Australia for A$79 and a new 2013 model sold for A$89. I don't know other models of Verismo but much expensive. I frequently check out WSM and do not see that much hype. Verismo does occupy the prominent position in the store. I just bought Keurig B60 for a week. I am Starbuck user, mostly order brewed coffee and drink black. I tested Green Mountain Sumantra, extra bold, dark roast, at 7.25oz, it is weaker than the brew in starbuck store. I think there is no way that the taste of single serve can replace in store. Beside the bigger brewer that can extract out more, the coffee is hotter in store. If you can find a way to higher temp and let brewing time little longer, you will get quite decent coffee. After 1st 7.25oz brew, you could brew 5.25oz using the same pod, taste is a little weaker but drinkable, the 3rd time is too light. In short, Keurig is pretty fine single serve. Even though I like Starbuck store's coffee, stronger and hotter, I will cut down the trip to Starbuck anyway. For this, I consider shorting Starbuck. I do own a small amount of GMCR at current level.
    9 Oct 2012, 03:03 PM Reply Like
  • ATG1977
    , contributor
    Comments (159) | Send Message
    My wife tried the verismo coffee and she hated it - I think gmcr has nothing to worry about
    9 Oct 2012, 09:39 PM Reply Like
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