Battle of Home Espresso Machines Is Brewing

Green Mountain cranks up its battle with Starbucks

   

Green Mountain Coffee RoastersTwo coffee giants are set to go head-to-head. Green Mountain Coffee Roasters (NASDAQ:GMCR) will begin selling the Keurig Rivo, a single-cup espresso machine. Developed with Italian firm Luigi Lavazza, the Rivo can make both lattes and cappuccinos and will be available in mid-November.

The launch is seen as the beginning of a showdown between Green Mountain and Starbucks (NASDAQ:SBUX). The mega-chain launched it own home system, the Verismo, in October.

The Rivo will list at $229.99, while the Verismo opens at $199 for the base model. Starbucks sells an upgraded version for $399. For the extra money, purchasers get greater temperature control and a self-cleaning function.

A standout difference between the two products is that Green Mountain’s machine uses fresh milk. Starbucks’ uses milk pods, though consumers have the option of purchasing a second system that heats milk for another $60.

Green Mountain hopes its new Rivo will help it compete in an increasingly crowded market. The expiration of some of the patents for its K-Cups has placed the firm under greater competitive pressure.

More from the coffee confrontation:


Article printed from InvestorPlace Media, http://investorplace.com/2012/11/battle-of-home-espresso-machines-is-brewing/.

©2016 InvestorPlace Media, LLC

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