Green Mountain-Laura Secord Sign Deal - Analyst Blog
March 03 2014 - 6:55PM
Zacks
Green Mountain Coffee Roasters Inc. (GMCR) and
Canada’s popular chocolate maker, Laura Secord, have entered into
an agreement to widen homemade single-serve beverage options for
Keurig users. Under the five-year agreement, Laura Secord’s hot
chocolate will now be available in K-Cup packs that can be used on
Keurig brewers.
Green Mountain produces coffees, teas and other hot beverages
sold in K-Cup and Vue portion packs which can be used on
single-serve Keurig brewers for making hot beverages.
Laura Secord will distribute its upcoming creamy hot chocolate
varietyscheduled to launch in 2014 fall in Keurig K-cups. The
agreement also includes the hot chocolate varieties to be launched
in fall 2015. The Laura Secord Hot Chocolate K-cups will be
available at the online shopping sites of Keurig and Laura Secord
along with the participating shops, grocery, retail and
Away-From-Home channels throughout the U.S.
The deal will boost Laura Secord hot coffee sales as the
convenience of Keurig brewers will enhance the popularity of its
beverage among Keurig fans. Moreover, the pact furthers Green
Mountain’s goal of sustaining its dominance in the single-serve
brewing market after the expiry of its K-cup patents in Sep
2012.
Green Mountain Coffee aims to popularize the single-cup brewing
system in America and has signed several strategic distribution
agreements to rope in popular brands like Dunkin’ Brands
Group Inc. (DNKN) and Starbucks Corp.
(SBUX) into its portion pack systems.
To maintain its dominance in the single-serve brewing category,
Green Mountain is stepping into the world of cold beverage and
soda. The company will launch ‘The Keurig Cold Machine’ for making
sodas, sports drinks and other beverages at the touch of a button.
Like its coffee machines, the cold machine would use pods to make a
variety of drinks.
In order to increase its brand power it has inked a 10-year
partnership deal with the beverage giant The Coca Cola
Co. (KO), under which Green Mountain will exclusively make
Coca-Cola branded pods for use on its upcoming Keurig Cold at-home
beverage system. Coca-Cola will also work with Green Mountain on
the development and launch of this latest version of Keurig
single-cup brewer.
Through these agreements, Green Mountain is aligning with the
strongest beverage brands to support a range of consumer choices
and taste profiles in Keurig Single-Cup Brewing system.
Green Mountain, which carries a Zacks Rank #4 (Sell), has been
witnessing decline in sales of brewers and accessories due to
unfavorable product mix and price realization and decline in
accessory net sales. Such agreements may offset declines for the
upcoming quarters.
DUNKIN BRANDS (DNKN): Free Stock Analysis Report
GREEN MTN COFFE (GMCR): Free Stock Analysis Report
COCA COLA CO (KO): Free Stock Analysis Report
STARBUCKS CORP (SBUX): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Keurig Green Mountain, Inc. (NASDAQ:GMCR)
Historical Stock Chart
From Jun 2024 to Jul 2024
Keurig Green Mountain, Inc. (NASDAQ:GMCR)
Historical Stock Chart
From Jul 2023 to Jul 2024