Battle of Home Espresso Machines Is Brewing

Green Mountain cranks up its battle with Starbucks

   

keurig 630 300x225 Battle of Home Espresso Machines Is BrewingTwo 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/.

©2014 InvestorPlace Media, LLC

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