The patent came off the K-cup. Just like a patent that comes off a major drug, generics take over some of the market. But GMCR has the name, distribution and the manufacturing in place to maintain a good percentage of the market. With all of that in place, they have a cost advantage over their competition and have room to cut their prices to increase unit sales as well as using that advantage to package "store brands".
Because GMCR has a strong distribution system, many of their competitors are going to use them to distribute their products in the market.
I don't think Wall Street has fully thought through the whole impact! GMCR is in a great position to expand their business as the economy improves and consumers demand these premium coffee brands.
The value of certain premium coffees cannot be underestimated. I bought Starbucks Italian Roast 10-15 years ago and used it continuously since. In Christmas 2010 I received a gift of Barista Prima Italian Roast K-cups. I've used a Keurig since 2005. That is by far the best coffee I have ever tasted and I always make sure I have it on hand. Regular coffees are like water. Why bother to buy them. This factor will continue to drive K-cup sales.
I saw an infomercial about the new Keurig Vue and the improvements are noticeable. From what I see, GMCR has more room to run up. You can have stronger coffee, fill a travel mug, have a frothy milk added, or control the temperature of your cup of coffee. GMCR is taking it to another level.