Read the following from Wells Fargo:
All K-Cups sold, by Smuckers, Folgers, Starbucks etc, are actually sales for GMCR, and it appears these 4 companies all did well this holiday season. From the folling excerpt SBUX increased sales by 4% over the previous month with a limited coffee variety. Imagine sales for GMCR, Folgers & Smuckers.
We are going to see another stellar performance. Perhaps EPS of $0.82 per share!!!!!!!!!
Wells Fargo notes that according to Nielsen, Starbucks (SBUX) K-Cups sales increased 4.0% sequentially while its share of K-Cups decelerated to 16.4% from 17.4% for the four weeks ending December 22, 2012. Green Mountain's (GMCR) K-Cup share declined modestly in the recent period to 56.5% vs. 57.0% last period, Wells added, while Folgers and Smuckers both gained K-Cup share. The firm notes that Starbucks share of the Ground Coffee category was 24.8% for the period, up from 23.1% last month. Wells has a Market Perform rating on shares of Starbucks.