Green Mountain Coffee Roasters (NASDAQ: GMCR) faces new competition from Bevyz, a privately held company that is expected to launch its first At-Home beverage system that serves hot, cold, sparkling and still beverages all in one small machine. The launch is expected on March 15th. Analyst Akshay S. Jagdale discussed the product and its implications for Green Mountain in a recent note.
"Bevyz is the only system/company we know of that is attempting to commercialize an At-Home beverage system that produces hot, cold, sparkling and still beverages in one machine (please see Figures 1-7 in the appendix for pictures of the aforementioned Bevyz system). We tried a broad range of products in a private viewing and came away impressed by the technology and were surprised by the small footprint (11.5” x 12” x 14”) of the machine. From a technology perspective, we see Bevyz as a strong #2 player in home carbonation behind GMCR; however, we believe it will take multiple years for the company to build a sizable installed base, and further technology advances are required for the system to become mainstream," said Jagdale.
"Following our meetings with Bevyz, we continue to have a positive view of the home carbonation category. We believe the GMCR/KO deal validates our positive thesis of the category and establishes GMCR as the leader. Although we appreciate SODA's (Nasdaq: SODA) strong marketing and distribution capabilities and first mover advantage, for the stock to work and its system to be become more mainstream, we believe it is critical for leading beverage brands to partner with the Company, which we now think is less likely given that we rank SODA behind GMCR and Bevyz from a technology perspective. The GMCR/KO (NYSE: KO) deal and the strong alliances Bevyz has built with some of the leading players in the global beverage industry (both equity stakes and product tests) seem to point to GMCR and Bevyz as the emerging leaders in the home-carbonation industry, in our opin
you still lack the basic understanding that SODA is a total dog until they create demand for their beverages and not just the system. You are a fan portraying yourself as an analyst.
No address the key issue here all these systems are single serve in a market that at home is very much larger servings . in addition no sane person is going to take the time to serve multiple single servings of soda type drinks to a bunch of kids .. this is not coffee and even in coffee single serve can be a pain in the butt !!
Lot of contradictions in the notes. Bevyz to be a strong number 2 player behind GMCR, bu it will take multiple years to build a sizable installed base. So how are they ahead of SODA? Makes no sense. I found it funny that he didn't mention Bevyz CO2 system which you throw away a cylinder every time you finish it. That means you lose the environmental benefit and your cost goes way up for CO2. Some #2 they are!