Battle of Home Espresso Machines Is Brewing

by Nate Wooley | November 8, 2012 1:03 pm

Green Mountain Coffee Roasters[1]Two coffee giants are set to go head-to-head. Green Mountain Coffee Roasters (NASDAQ:GMCR[2]) 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[3]). 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:

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2011/10/keurig-630.jpg
  2. GMCR: http://studio-5.financialcontent.com/investplace/quote?Symbol=GMCR
  3. SBUX: http://studio-5.financialcontent.com/investplace/quote?Symbol=SBUX
  4. Green Mountain to Make K-Cups for CostCo: http://investorplace.com/2012/11/green-mountain-to-make-k-cups-for-costco/
  5. Starbucks Tells Taxman, Investors Two Different Stories: http://investorplace.com/2012/11/starbucks-tells-taxman-investors-two-different-stories/
  6. McDonald’s to Sell Bagged, Ground Coffee: http://investorplace.com/2012/10/mcdonalds-to-sell-bagged-ground-coffee/

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