Keurig and Green Mountain – A Winning Combination
By Jerry M Stein
More people are forgoing their morning stop at the coffee corner for that $4.00 cup of Java and are starting to brew coffee at home. It’s having an effect, too, as with more layoffs, there are less people on the road commuting and going to specialty shops for their caffeine fix. Just take a look at Starbuck’s downward plunging stocks. Its sales are down and it even made the investment gurus’, the Motley Fool’s list of the 10 Worst Stocks of the Year! Check it out at www.fool.com (/investing/general/2009/01/28/worst-stock-for-2009-starbucks.aspx.).
With the new improved single cup brewers, you can have a great cup of gourmet coffee for less than a dollar. Keurig is the market leader in single cup brewing and its coffee makers are rated #1 in durability and reliability. Plus, they consistently produce a great cup of coffee. In the last quarter of 2008, Keurig sold over 711,000 coffee brewers, a 121% growth rate.
All of the Keurig brewers use K-Cups, small containers of exact portions of vacuum packed coffee. Green Mountain Roasters acquired Keurig in 2006, turning a courtship of several years into a marriage. During the last quarter of 2008, over 357 million K-Cups were sold, which was an increase of 55%. The K-Cups are patented and contain gourmet coffee from respected names like Newman’s Own Organic, Timothy’s, Tulley’s, Emeril, Gloria Jean, Caribou Coffee, Green Mountain Roasters, the Coffee People, and several others.
Americans love their coffee and they also love convenience. The National Coffee Association says 55% of American adults consume coffee daily. Plus they want a GOOD cup of coffee and it’s anticipated that there will be a 17% growth in the daily consumption of gourmet blends, according to SmallCapInvestor.com at www.smallcapinvestor.com. American’s love of convenience and coffee has been a boon for Green Mountain Roasters and their stock is rising – as Starbuck’s is falling. Green Mountain made the Top 10 List of the Market’s Best Stocks and the company recently purchased Tulley’s Coffee of Seattle. Primarily a New England company, this purchase will give Green Mountain a West Coast base and a starting point for further expansion.
Green Mountain has introduced the K-Cups into several grocery chains and plans to soon add more. Supermarkets that carried the K-Cups as part of their specialty coffee selection experienced more than twice the growth in dollar sales of the national average for gourmet coffee. The single cup category allows grocers to supplement their packaged coffees and participate in the ‘by the cup business’ traditionally taken by the higher end gourmet shops. The specialty coffees in K-Cups have sparked grocery sales, invigorating the coffee aisle with fresh gourmet selections for customers. The winning combination of the Keurig Single Cup Brewers and the K-Cups gives consumers an economical way to bring the specialty coffee house experience into the home.
If you are looking to for more information or buy Keurig products visit http://www.greatcoffee.com
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