Kroger’s to Sell K-Cups, Green Mountain Shares Drop

by Christopher Freeburn | June 11, 2012 1:08 pm

Consumers who like to use single-serving brewers to make their coffee, and who shop at Kroger‘s (NYSE:KR[1]) stores, will soon have a new option in pre-packaged single-serve coffees[2].

The supermarket chain says it will introduce its own branded coffees in K-Cups, single-serving containers designed to be compatible with Keurig coffee makers from Green Mountain Coffee Roasters (NASDAQ:GMCR[3]), and possibly other manufacturers, Reuters noted.

Shares of Kroger’s edged slightly lower in midday trading on Monday, while shares of Green Mountain Coffee Roasters plunged more than 7%.

The market for single-serving coffee brewing remains a fraction of the overall coffee market, but it has attracted a number of leading brand names including, Starbucks (NASDAQ:SBUX[4]), Kraft (NYSE:KFT[5]), Sara Lee (NYSE:SLE[6]) and Nestle (PINK:NSRGY[7]) as consumers look for increased taste and home brewing ease.

Single-serving coffee brewers have proven successful for Green Coffee Mountain Roasters, which purchased Keurig, the manufacturer of the K-Cup and Vue single-service brewing machines in 2006.

Starbucks has announced plans to offer its branded coffees in Keurig-compatible containers at Starbucks locations[8]. Last week, Starbucks also announced plans to partner with Coinstar[9] to launch hundreds of automated kiosks in supermarkets and malls dispensing Seattle’s Best coffee in single serving cups for $1.

Source URL: http://investorplace.com/2012/06/krogers-to-sell-k-cups-green-mountain-shares-drop/
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