KeyBanc thinks a K-cup pricing war is still years away as the category continues to see strong growth trends and a favorable pricing atmosphere. The firm taps Green Mountain Coffee Roasters (GMCR +0.9%) as a good buy with shares set to go to $70. GMCR watch: For the most part, the bear thesis on the dire impact of Starbucks' Verismo machine and Kraft plus others emergence into the K-Cup market hasn't played out yet.
Is Green Mountain Coffee Roasters (GMCR -4.4%) gaining enough market share to compensate for lower K-cup prices? That's the question that could be answered when the company reports earning on May 8 and also has importance in evaluating the next couple of quarters. Sector watch: The company - along with peers (KRFT, SJM, PEET, DNKN) - received a bit of a jolt when Starbucks dropped the pricing on its 12-ounce bagged coffee by a dollar to $8.99.
Longbow Research is out with a note to clients indicating demand for K-cup products is strong. The data point is good news for Dunkin' Brands (DNKN +0.1%), Starbucks (SBUX +0.2%) and Green Mountain Coffee (GMCR +0.7%) as the thesis that the K-cup market is big enough for multiple companies looks to be playing out. What to watch: A key trend is that fresh generic brands in the market are drawing new customers instead of taking away market share from the established sellers.
Companies selling coffee are expected to continue to skate by with high prices on premium coffee despite the recent drop in coffee commodity costs. Channel checks and recent sales reports indicate demand and pricing power is as strong as ever. Perking up: Starbucks (SBUX), Dunkin' Brands (DNKN), McDonald's (MCD), Green Mountain Coffee (GMCR), Tim Hortons (THI), and Whole Foods Market (WFM).
Spending on small kitchen appliances jumped 10% last year to $5.51B as new tech features drew in the baby boomer generation. The latest buzz is that edgy appliances to make tea and yogurt concoctions could be the latest craze. Look for Macy's (M), Williams-Sonoma (WSM), SodaStream (SODA), and Green Mountain Coffee Roasters (GMCR) to take advantage of the trend while J.C. Penney (JCP) and Sears Holdings (SHLD) have a little catching up to do.
Keybanc raises its price target on Green Mountain Coffee Roasters (GMCR) to $70 from $55 after channel checks show that pricing is holding steady despite the emergence of new private labels in the space. GMCR +1.1% to $57.50.
Green Mountain Coffee (GMCR) is laying off 110 workers (less than 2% of its workforce) at production facilities in CA, Montreal, and Toronto. The announcement comes in the midst of a year where GMCR is expected to post 16% revenue growth.
Don't look now but shares of Green Mountain Coffee Roasters (GMCR +2.6%) have shot right past $50 and continue to trek higher as many of the dire predictions from the bear camp seem to be falling away - in particular the death-by-Verismo argument. (Google Trends: Keurig/Vue vs. Verismo). Next phase: With Starbucks (SBUX +1.2%) not doing so bad itself, does this mean the market is plenty big enough for both companies to prosper in the coffee machine/consumables space?
Shares of Green Mountain Coffee Roasters (GMCR) are on watch with the company's annual meeting scheduled for today. In the past, Green Mountain Coffee Roasters has used the event to make product announcements.
Green Mountain Coffee Roasters (GMCR) announces a new Keurig Vue brewing system which will list at a lower price than other products in the series at $169.99. The Vue V500 will hit the market on April 2 with the ability to brew seven different cup sizes in under a minute. GMCR -0.3% premarket.
Shares of Green Mountain Coffee Roasters (GMCR +1.8%) show extra volatility with the rumor mill churning again on interest from Nestle (NSRGY.PK) in the Keurig maker. Though the mix of a U.S-centric GMCR and global giant Nestle makes sense on some fronts, there's nothing concrete on a deal and the prospect for a bid is mainly post-Heinz M&A scuttlebutt.
Keurig Green Mountain Inc, formerly Green Mountain Coffee Roasters, Inc., is engaged in the coffee and coffeemaker businesses in the United States and Canada. It sells Keurig Single Cup brewers and roast high-quality Arabica bean coffees.