Green Mountain to Make K-Cups for Costco

by Nate Wooley | November 2, 2012 11:14 am

Green Mountain Green Mountain to Make K Cups for Costco[1]Vermont-based coffee maker Green Mountain Coffee Roasters (NASDAQ:GMCR[2]) announced that it will begin making coffee capsules for Costco (NASDAQ:COST[3]). The deal makes Green Mountain the exclusive maker of K-Cups for Costco’s Kirkland Signature brand.

Costco is developing two coffee blends for Costco, a light breakfast blend and a darker roast. They should be available in December 2012.

Green Mountain shares, which had lost more than half their value this year, climbed 9% yesterday following the announcement and are up again Friday morning in early trading. The shares have been down significantly as Green Mountain faced increasing market pressure from Kroger (NYSE:KR[4]) and Safeway (NYSE:SWY[5]), both of whom also make capsules for Keurig machines.

More from the coffee world:

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2011/05/Green-Mountain.png
  2. GMCR: http://studio-5.financialcontent.com/investplace/quote?Symbol=GMCR
  3. COST: http://studio-5.financialcontent.com/investplace/quote?Symbol=COST
  4. KR: http://studio-5.financialcontent.com/investplace/quote?Symbol=KR
  5. SWY: http://studio-5.financialcontent.com/investplace/quote?Symbol=SWY
  6. Starbucks Tells Taxman, Investors Two Different Stories: http://investorplace.com/2012/11/starbucks-tells-taxman-investors-two-different-stories/
  7. McDonald’s To Sell Bagged Ground Coffee: http://investorplace.com/2012/10/mcdonalds-to-sell-bagged-ground-coffee/
  8. Green Mountain: A Fresh Roast a Year Ago, Now Old Grounds: http://investorplace.com/2012/09/gmcr-one-year-later-great-coffee-poor-investment-gmcr-sle-sbux-dnkn-cag/

Source URL: http://investorplace.com/2012/11/green-mountain-to-make-k-cups-for-costco/
Short URL: http://invstplc.com/1nwrIAh