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Keurig Green Mountain, Inc. Message Board

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  • tigerpac tigerpac Nov 9, 2010 9:44 PM Flag

    Coffee prices falling..

    Starbucks has even admitted that start up costs and marketing expenses of Via at least equal the $180 million revenue.

    Remember Starbucks will (has to) spend heavily to promote Via, something that Green Mountain/Keurig hasn't had to do yet with K-cups thanks to strong word of mouth.

    As GMCR increases the footprint of k-cups, it will begin to need to advertise more because all the early adapters have purchased. The other potential customers will need to be "convinced". But have we reached that threshold yet? I don't think so and probably won't for at least another year.

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    • GMCR is primed and trading in a tight trading range. I would expect positive news coming in the very near future on alliances and partnerships.

      I also think GMCR will push back on buyout especially when they are on the cups of major break through.

 
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