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Showing posts from March 10, 2011

Green Mountain embraces the coffee gorilla

Commentary: Working with Starbucks is hardly without risk By MarketWatch March 10, 2011 SAN FRANCISCO (MarketWatch) — A word of advice to Green Mountain Coffee Roasters Inc.: Be careful who you invite over for a cup of coffee. After a tense standoff in the fast-growing world of single-cup brewing, Green Mountain (GMCR 60.58, +16.94, +38.82%) and Starbucks Corp. (SBUX 37.85, +3.31, +9.58%) have joined forces. According to their joint statement, Starbucks will add its powerful brand name to the lineup of coffees and teas available in K-Cups for use in Green Mountain’s Keurig brewing machines. In exchange, Vermont-based Green Mountain gets to place its Keurig single-cup brewers in Starbucks stores, gaining instant access to millions of coffee lovers via thousands of outlets across the planet. This marketing bonanza sent Green Mountain shares soaring as much as 40% Thursday. And to think, less than a month ago Starbucks was making ominous comments about how it intended to crush...

Starbucks, Green Mountain brew K-Cup pact

Photo illustration depicts the potential appearance of a Starbucks single-serve cup for Keurig brewers from Green Mountain - MarketWatch Starbucks arch-rival Peet’s Coffee & Tea’s shares drop on the news By Matt Andrejczak and Andria Cheng MarketWatch March 10, 2011 SAN FRANCISCO (MarketWatch) — In a deal set to stir up the single-cup coffee brewer market, Starbucks Corp. and Keurig brewer parent Green Mountain Coffee Roasters Inc. said Thursday that Starbucks coffee and its Tazo tea will be sold in Keurig’s K-Cup portion packs. The long-speculated-on deal sent Green Mountain shares (NASDAQ:GMCR) surging 38% as some investors had wondered if Starbucks would sell its own single-cup brewing machine to compete with Green Mountain. Thursday’s deal doesn’t prevent Starbucks from doing so in the future. Seattle-based Starbucks’ shares (NASDAQ:SBUX) advanced 9%. Both stocks traded at 52-week highs. Emeryville, Calif.–based Peet’s Coffee & Tea Inc. (NASDAQ:PEET) was ...