GMCR: Green Mountain Coffee Sued Over Alleged K-Cup Monopoly

A change to its Keurig brewer could restrict competition

   

GMCR: Green Mountain Coffee Sued Over Alleged K-Cup Monopoly

TreeHouse Foods (THS) is taking Green Mountain Coffee Roasters (GMCR) to court over its single-cup coffee packaging and brewers.

keurig 630 300x225 GMCR: Green Mountain Coffee Sued Over Alleged K Cup Monopoly
Source: Flickr

THS alleges that GMCR is exercising monopoly control of the single-cup market and is preparing to alter its popular single-serving Keurig coffee brewer to make it impossible for competitors to offer compatible K-cup coffee packages. THS contends that the move will boost prices for coffee consumers by as much as 25% and limit competition, Bloomberg notes.

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The lawsuit was filed in the U.S. District Court for the Southern District of New York. A GMCR spokesperson called the THS lawsuit “totally without merit.”

GMCR shares slipped slightly in Wednesday morning trading. Over the past year, GMCR stock has gained more than 170%.  By contrast, THS shares rose modestly on Wednesday. THS stock has climbed 20% over the past year.

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Article printed from InvestorPlace Media, http://investorplace.com/2014/02/gmcr-green-mountain-coffee-sued-alleged-k-cup-monopoly/.

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