My carpel tunnel syndrome is killing me this afternoon! Who are all these people????
Frankly the news was not as bad as I was personally expecting and I was pleasantly surprised to see: 1)higher revenue/sh and 2)higher profit margins on the K-cups attributed to the acquisitions in 2010 of Timothys and DDRX which the company roasting facilities.
GMCR started out in the N.E. with coffee shops similar to Van Houtte's and then decided to get out of that business. They struck deals with gas stations and developed brand recognition that way before going into grocery stores and doing the Keurig accquisition. I expect that they will follow that proven method in Canada. They may have competition there from Horton's. Or they may try to develop GMCR brand recognition by bringing it into the Van Houtte caffes.
I have expressed concern about the debt load that they are taking on to do the Van Houtte deal, but if you look at Van Houtte as a company, they are huge in Canada across the entire country which would give a distribution network already in place for a country with a whole lot of coffee drinkers. Plus as a part of the Van Houtte deal GMCR said it was going to look to sell a part of the business which would recoup part of the purchase price.