New Keurig Brewer Turns the K-Cup Into a “K-Pot”

Competition in the K-Cup coffee market is rising

By Christopher Freeburn, InvestorPlace Writer

Keurig Machine from Green Mountain Coffee RoastersGreen Mountain Coffee Roasters (GMCR) is preparing to step boldly beyond the single cup.

The company, which makes the very popular Keurig single-serving coffee brewers, is preparing to launch a new Keurig machine — the Keurig BOLT Carafe Brewing System — capable to brewing full pots of coffee for multiple drinkers. The new machine will reach consumers this fall, the Wall Street Journal notes.

Bull’s Eye Report: Green Mountain Coffee Roasters (GMCR)
Bull’s Eye Report: Green Mountain Coffee Roasters (GMCR)

Rising competition in the single-cup coffee market is threatening Green Mountain’s earnings. The company derives about 90% of revenue from its K-Cup business.

Worries over the company’s reliance on the K-Cup date back to 2011, when activist investor David Einhorn sounded the alarm about lower cost versions of the K-Cup pods from rival coffee makers.

Green Mountain has been looking to expand its offering for larger public venues like restaurants and offices. It already makes coffee pouches for larger pots of coffee, but the new pot-brewing Keurig machine will be the first device to employ its pressurized brewing technology.

In May, Starbucks (NASDAQ:SBUX) signed a new 5-year agreement to triple the number of K-Cup coffee packets it produces for Green Mountain.

Shares of Green Mountain sank almost 1% in pre-market trading on Friday.

Article printed from InvestorPlace Media,

©2018 InvestorPlace Media, LLC