• Mar. 3, 2016, 9:14 AM
    • JAB Holding completes its acquisition of Keurig Green Mountain (NASDAQ:GMCR).
    • The transaction brings Keurig under the same corporate umbrella as Caribou Coffee, Peet's Coffee & Tea, Jacobs Douwe Egberts, Bach Espresso, Bravo, Einstein Noah Restaurant Group, and Espresso House.
    • By swallowing up Keurig, JAB has raised the stakes in its battle with Starbucks (NASDAQ:SBUX), Mondelez International (NASDAQ:MDLZ), Nestle (OTCPK:NSRGY), and JM Smucker (NYSE:SJM) for coffee dominance. For now, Starbucks plans to stick with its Keurig partnership, although on the last SBUX earnings call Howard Schultz called the future of the relationship unresolved (earnings call transcript). The other companies will also have to shift strategy to the new coffee matrix.
    • JAB is a privately-owned company with power divided up between the children of Albert Reimann.
    Mar. 3, 2016, 9:14 AM | 21 Comments
  • Dec. 7, 2015, 8:11 AM
    • Keurig Green Mountain (NASDAQ:GMCR) announces it will be acquired by privately-owned JAB Holding Company for $92 per share in a deal valued at $13.9B. JAB Holding is an experienced collector of large consumer product brands.
    • GMCR stakeholder Coca-Cola (NYSE:KO) says it backs the buyout and indicates it will work with JAB to stay on as a major Keurig single-serve partner.
    • The deal is expected to close in the first quarter of 2016.
    • GMCR closed at $51.70 on Friday. Shares are currently on a trading halt, but will soon skyrocket.
    Dec. 7, 2015, 8:11 AM | 28 Comments
  • Feb. 14, 2015, 10:13 AM
    • Craft soda is starting to become a trend to watch closely, according to industry insiders.
    • Though still accounting for only ~1% of the total U.S. soda market, major retail chains have increasingly been willing to bet on local craft brands in store aisles.
    • The craft craze is old news for the beer industry where coming-of-age millennials buy craft/local beers at a 50% higher rate than brand-loyal older generations. Fading stars such as Budweiser and Bud Light are testament to the impact of the millennial paradigm.
    • The craft influence in coffee hasn't been lost on Starbucks which has strategically deployed trucks on college campuses in an effort to win over students.
    • Despite the progressive reputation of Starbucks, analysts think new upstarts such as Craft (subscription) and Cups (app) have a shot of gaining influence with the Indie-minded millennial crowd on "customization" and pricing.
    • What to watch: An increase in M&A activity in the beverage sector is expected as major companies strategically pick off more local craft brands to incubate.
    • Craft coffee watch: GMCR, SBUX, JVA, SJM, KRFT, DNKN, QSR, MCD.
    • Craft soda watch: PEP, KO, MNST, COT, DPS, OTCQB:JSDA, REED, SODA,  FIZZ.
    Feb. 14, 2015, 10:13 AM | 24 Comments
  • Dec. 4, 2014, 4:14 PM
    • Keurig Green Mountain (NASDAQ:GMCR) is buying the 85% of Bevyz it doesn't already own for €178M ($220M). The deal will be funded with cash on hand, and is expected to close in the next month.
    • Bevyz, which has operations in The Netherlands and Malta, sells a single-portion drink machine (The Fresh) that can be used to make teas, coffees, juices, and sparkling beverages, along with related capsules. Keurig declares Bevyz provides it with "unique and complementary technology and research and development capabilities."
    • Nonetheless, Keurig still plans to launch its Keurig Cold system (being developed with Coca-Cola) in the fall of 2015. The company is reiterating its FQ1 and FY15 (ends Sep. '15) guidance.
    Dec. 4, 2014, 4:14 PM | 8 Comments
  • May 9, 2013, 7:19 AM

    A dual appearance by the CEOs of the Starbucks (SBUX) and Green Mountain Coffee Roasters (GMCR) on CNBC gives a good indication of the expected synergies between the coffee players in areas of distribution and international expansion which spurred the new 5-year deal. Is Starbucks (SBUX) considering making a bid to buy Green Mountain Coffee Roasters (GMCR)? A good tap dance from Starbucks' Howard Schultz (video). Premarket: SBUX +0.9%, GMCR +17.7%.

    May 9, 2013, 7:19 AM
  • Jul. 23, 2012, 9:06 AM

    Peet's Coffee (PEET) is being acquired by German holding company Joh A. Benckiser for $73.50/share in cash, or $1B. The price represents a 28.6% premium to Peet's Friday close. Shares are halted. SBUX -3.1%, lower with the market. GMCR +5.4%. JVA +16.4%. DNKN could also be volatile.

    Jul. 23, 2012, 9:06 AM | 8 Comments
  • Jun. 28, 2012, 2:31 PM

    Starbucks (SBUX -2.5%) buying Green Mountain Coffee Roasters (GMCR -0.8%) makes sense to The Motley Fool based on the emerging strategic fit between the two companies. Even allowing for a hefty premium - say $30 - a SBUX-GMCR deal goes off at a reasonable valuation in a merger that would give the combined company the muscle to outlive worries over K-Cup revenue and patent expirations as the single-cup market matures.

    Jun. 28, 2012, 2:31 PM | 9 Comments
  • Jun. 4, 2012, 4:15 PM

    Starbucks (SBUX) is buying Bay Bread, owner of the La Boulange bakery chain, for $100M in cash. The company plans to introduce La Boulange's pastries and breads to its U.S. coffee shops, while also expanding La Boulange's own U.S. retail presence. Starbucks expects the deal to dilute 2H12 EPS by $0.02. SBUX -2.4% AH. GMCR -2.6%. (previous)

    Jun. 4, 2012, 4:15 PM | 10 Comments
  • Nov. 11, 2011, 10:55 AM

    Even after shares shed 39% yesterday and 63% since September, Green Mountain Coffee (GMCR +5.8%) is still nearly twice as expensive for potential acquirers as the median S&P 500 company. Analysts say potential buyers would risk overpaying for a firm that faces competition, as patents on its brewing system expire in less than a year, and scrutiny of its accounting practices.

    Nov. 11, 2011, 10:55 AM | 4 Comments
  • Nov. 10, 2011, 1:23 PM

    Starbucks (SBUX +1.3%), whose shares are unscathed by partner Green Mountain's (GMCR -37.1%) day of infamy, announces it's acquiring Evolution Fresh, a maker of premium fruit, vegetable, and protein juices, for $30M. Starbucks, which will distribute Evolution's juices in its stores, says the deal is part of an initiative to "build a national Health and Wellness brand."

    Nov. 10, 2011, 1:23 PM | 1 Comment
  • Aug. 29, 2011, 10:04 AM

    Green Mountain Coffee (GMCR) is selling its Filterfresh workplace coffee service business, obtained through its 2010 acquisition of Van Houtte, to ARAMARK for $145M in cash. Green Mountain could use the sale's proceeds to pay down part of its $422M in debt.

    Aug. 29, 2011, 10:04 AM