As I indicated a month ago in an article I wrote for investors on Seeking Alpha, orders for Keurig brewers were showing signs of slowing at BBBY. Upon receiving our latest batch of channel checks from BBBY we have discovered that Keurig's number one retail partner by sales volume has initiated orders of the Verismo 580 machine for the holiday season. It is important to understand that when new products become available to the marketplace, retailers are in many ways obligated to provide the increased choices available for customers, whether those additional choices are good or bad has no initial significance as sales will be the determinant for future orders.
Thanks for the pleasant back and forth. Guess I should’ve clarified. An acquisition by SBUX is more a pie in the sky of my reading of the tea or should I say, coffee leaves. It’s based on the rest of my thesis that SBUX doesn’t penetrate the single-serve market as they would like YET AGAIN, and instead of allowing the Keurig to further continue its dominance, they buy it and squash or optimally streamline the brand offerings to reinvent Keurig as a SBUX brand. That is, if the Verismo fails as I expect. And, that is, IF they turn this story into a CF machine as I have suggested and you and the gang seems to confirm as the necessary element we’ve yet to see.
In the meantime, GMCR needs to right this ship and I believe they have the product to do so. I just hope that management has truly started down this path. It's one thing to say it. Now, show me the money. I liken Stiller to Jobs in a way. A passionate entrepreneur that doesn’t respect the stock market. Jobs ultimately did what he did best, conned everyone into needing his products and stock. The guys at GMCR have done well thus far on the former. Now they just need to learn how to do the latter, the right way instead of the crap they pulled in 2011.
You fail to ask 2 important questions. 1) Out of 388 respondents, how many are a SBUX customers? Do they intent to go to the store if they like Verismo brewed latte or espresso. 2) How many have tried Keurig brewers?
Our latest market research was held this weekend in a local Bed Bath and Beyond store where our team of market researchers held Verismo 580 demonstrations for guests at Bed Bath and Beyond. How many locations did you conduct the research?