Just another verification of the paradigm shift in coffee drinking
Nestles's Nespresso (Based in Switzerland) see's double digit growth.
90 percent of sales are in Europe
Shorts would have you believe single brew coffee is a fad
GMCR/KEURIGS largest "competitor" in US is MARS Flavia ( Mars is privately owned)
Kraft has its Tassimo (KFT is publically traded)
Nestle's has its Nespresso
Cuisinart now licensed for brewer & K-Cups
NOT YET on board with their own brewers:
Proctor & Gamble and Unilever
(If you check the resumes of the upper management of GMCR/KEURIG, many came from P&G and UNILEVER- for instance Keurig CEO Stacey came from P&G and GMCR CFO Rathke came from Unilever company Ben & Jerry's)
AT WHO'S EXPENSE IS NESTLE EXPECTING TO GRAB THIS GROWTH FOR THEIR BUSINESS?!?!
My guess is GMCR...no one cares if these guys came from Unilever, they do not want to buy this turd! Also, I love how you leave out the obvious headwinds GMCR now faces, that it did not just a short time ago:
1) Bad economic environment, lower discretionary spending, major swing upward in personal savings rate (from -0.5% to more than positive 5% now)
2) Major players like Nestle grabbing market share at lower margins (currently, Nespresso has only 5% of its revenue from Americas...guess GMCR will be giving up some to them)
3) Pitching convenience, instead of better coffee, at an increased cost for consumer as measured on a cup vs. cup comparison
4) Astronomical share price run-up, not sustainable in even the best of bull markets
I've said it before, and I will say it again....THIS IS AN AWFUL LOT LIKE THE SAME SCENARIO WHICH FOUND CROX TRADING AT +$80/SHARE...and we all know how that has played out!!!
Hard to take anything seriously whether during a private conversation, public conversation such as local town meeting or state meeting or on a message board such as this where a supposed adult consistently uses profanity or cannot communicate without profanity.