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Keurig Green Mountain, Inc. Message Board

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  • chrisnd01 chrisnd01 Aug 11, 2010 9:00 PM Flag

    What if GENERAL MOTOR agrees to sell BMW cars?

    Well, think about how much capital it took for GMCR to go after the US market. They had to purchase several regional coffee companies. I understand part of the motivation was to get control of the K-cup licenses. However, they spent probably a billion dollars or so to be able to produce and distribute in the US. It would take more money than that to scale up in Europe and the rest of the world.

    In this case, another company offered the distribution platform and the capital needed to expand overseas. It's a terrific deal for GMCR.

    The GM and BMW analogy has no merit. If you were running GMCR, how would you go after the international market knowing that it is capital intensive to expand anywhere, especially outside the US. Do you see a more efficient way?

 
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