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Green Mountain Coffee Roasters (GMCR +8.6%) rallies after an executive hiring suggests...

Green Mountain Coffee Roasters (GMCR +8.6%) rallies after an executive hiring suggests international growth is on the company's plate. Though it acknowledges that it's looking at opportunities outside of North America, Green Mountain has been cryptic over where the focus may be.
Comments (10)
  • markb
    , contributor
    Comments (407) | Send Message
     
    The appointment of Geoffrion as the new international guy is big. This isn't some junior manager...he used to be President of Van Houtte in Canada. His first big meeting will be with his Lavazza colleagues. Check out the Lavazza website...they have a distribution network covering 70 countries! GMCR could be global practically overnight. GMCR/Lavazza is a global match made in heaven!
    17 Oct 2012, 01:05 PM Reply Like
  • mbagne
    , contributor
    Comments (20) | Send Message
     
    I'm definitely not the same guy as markb above, yet we're obviously both long this company. It's so easy to connect these dots, folks, International, upcoming launch of the Rivo with Lavazza, a coffee giant in Europe in contrast to fledgling Starbucks. Real milk and Lavazza brand will make Rivo an instant contender with Nespresso and with Starbucks as the tiny home espresso market grows in the U.S. For a glimpse of the Rivo, scroll down toward bottom of this link: http://bit.ly/U57nFh
    17 Oct 2012, 02:56 PM Reply Like
  • markb
    , contributor
    Comments (407) | Send Message
     
    That Rivo looks awesome...and real milk! Why would any serious espresso drinker want to use freeze dried milk powder ala Verismo? Italians may not know how to run a country but they make a good espresso. Just wish GMCR would get Rivo on the street soon to prevent wholesale Verismo buyer remorse.
    17 Oct 2012, 03:18 PM Reply Like
  • gtchambers3
    , contributor
    Comments (25) | Send Message
     
    The articles I've read on the LavAzza SpA and GMCR collaboration was only based on designing the Rivo machine, not that they would provide a distribution chain. mbagne, do you have a link to some details on that agreement? However, I find it good to note that on 9/11 LavAzza increased its holdings in GMCR - which hopefully signals that it too hopes to profit from the collaboration beyond just helping to design the Rivo.
    17 Oct 2012, 05:16 PM Reply Like
  • mbagne
    , contributor
    Comments (20) | Send Message
     
    No, it's only speculation on my part, considering the big stake Lavazza has in GMCR and the fact that four styles of Lavazza espresso will be at the heart of the Rivo's "kcups." (See photo toward bottom of http://bit.ly/U57nFh.) Just seems natural to me that Rivo/Lavazza espresso will be packaged similarly to Kuerig/Kcup displays, Vue/Vcup displays, or Verismo/Starbucks displays. Hopefully Green Mtn can still launch before Christmas and the company can begin to provide such details.
    17 Oct 2012, 07:59 PM Reply Like
  • J Mintzmyer
    , contributor
    Comments (3604) | Send Message
     
    If GMCR can't get it right in the US, how is international expansion expected to work? Sounds like a NFLX-type bomb to me...
    18 Oct 2012, 04:18 AM Reply Like
  • markb
    , contributor
    Comments (407) | Send Message
     
    "Can't get it right in the US?" If you look at their financials and market penetration over the last ten years, I'd say they got it really right in the US. Yes there was a relatively short term stock price bubble but those work for you on the front end. Their US success could be repeated faster internationally. Not with the same penetration, but the market is huge. And even though SBUX seems to be everywhere out there, there are still more places that are on the postal route for delivery of K's, V's and R's.
    18 Oct 2012, 09:58 AM Reply Like
  • williasp
    , contributor
    Comments (187) | Send Message
     
    What's the basis for saying they can't get it right in the US? They succeeded in establishing and growing the single cup market where others (Tassimo, Senseo) had failed. The bear criticism is based on the inability to continue growing at 70+%. But that is an unrealistic goal. No one grows at that rate forever. So a decline in growth to more realistic levels is now branded a failure. For my investment money, I am happy to invest in companies growing at modest double-digit rates, particularly when I can buy them at discounted PE levels.
    18 Oct 2012, 10:01 AM Reply Like
  • Bill Burtchaell
    , contributor
    Comments (403) | Send Message
     
    Gross residual sales of nearly a billion per quarter, certainly gives you the cash flow and the time to work through the moguls. Christmas is coming, brewer sales last season were 4 million kuerigs! Just how right do we need to get it? Give me a break!
    18 Oct 2012, 01:01 PM Reply Like
  • ATG1977
    , contributor
    Comments (159) | Send Message
     
    GMCR at pre Eihorn levels would be fantastic
    18 Oct 2012, 10:23 PM Reply Like
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