1. Starbucks reported at their last conference call (9 month results) that they "were on track to reach $100 million Via sales for it's first year. They had be averaging $8 million sales per month globally. So unless they did 3x the avg sales in July, the sales total is more like $80 million for 10 months (assuming we can trust Starbuck's numbers to begin with).
2. Starbuck's has never claimed to have 30% of the single serve/coffee pod market. Where the author pulled that number from is incredulous.
3.Claiming the space has only $330 million sales is laughable. GMCR has already reported far more than that by itself.
4.Via has been in Costco since it's launch 10 months ago. Not in a few test stores, but practically all it's stores.
All in all, the article is a joke.
<Starbucks (Nasdaq: SBUX) announced that its Via instant-coffee offering has been a huge hit with consumers, raking in $100 million in sales in its first 10 months of existence. But if Starbucks is winning ... who's losing?
At first, the coffee giant's plan to release an instant java that might dilute its brand (and cannibalize its drink sales) seemed strange. But now, Starbucks is laughing all the way to the bank. The company said it has already grabbed 30% of the market share in the single-serve/pod coffee space, a sector that represents $330 million in sales, according to A.C. Nielsen. Starbucks is now increasing Via distribution in major consumer-facing retailers such as Costco (Nasdaq: COST), Wal-Mart (NYSE: WMT), and CVS (NYSE: CVS).>
It actually is based on a press release SBUX put out in last couple of days, so SBUX is claiming 100m in global sales. Interestingly, when they say SBUX has 30% of market, I think they take the global sales of 100m and apply it to US market of 330m--not exactly accurate.
I still don't beleive Via is a competitive threat to Keurig. It is not in our Costco. I did see it at one grocery, and its cost is double or more cost of a kcup. All SBUX keeps focusing on is no equipment needed--so how is that different from any instant coffee?
I still question their sales figures--what are US sales by qtr? Why does SBUX not release that info?