I was in a west Houston BB&B yesterday. The Keurig/C-cup display was way, way bigger and more prominent than it has been over prior two years. There was always a nice display in the center of the traffic path near the coffee maker section of the store. They would have demo's near the display periodically. When I went to the store yesterday, there was a giant wall of c-cups from floor to about 12 feet tall. It was probably 30 feet wide in the shape of an "L". The display was immediately as you entered the store. You couldn't miss it. There were machines on a shorter rectangular display within the "L" shape wall. There was a very small area of the display that had some Tassimo machines/Starbucks discs.
When I checked out, I brought up the Keurig/coffee sales with the clerk. She said that sales had not gone down with softened economy but rather continue up. They now sell more than $17K per week in coffee in their store. She said that more businesses were coming in to buy for their office brewers.
Please note that the Houston economy is stronger than much of the country and our area of town has higher household income than most.
I spoke to a district manager of BB & Y at a recent trade show and he stated that the Kuerig coffee machine is the #1 non bed/bath seller in all of his stores. He said that unit sales have gone up every month for the last 12 months....K-cup sales have increased a larger %. The wall of flavors is a big selling point. The more units sold at other retailers helps him because of this larger K-Cup selection.
Just one man's opinion!
The thing I like about Bed, Bath & Beyond is the fact that they have the largest assortment of K-Cup flavors. The stores I visit heach have at least 15 flavors. Most other retail outlets carry no more than five. For the most part, it appears GMCR has done a good job deciding which retailer has access to particular flavors and brands. Almost like giving them an exclusive to that sku. The west coast retailers may have an emphasis on west coast brands, Tully's, Diedrich's. etc. at the moment to satisfy regional tastes and that strategy extends throughout the country.
But it can be changed up at moment's notice so east coast consumers can try west coast flavors and vice versa. That's the razor strategy at it's best.
I walked into a Sherwin Williams paint store and and noticed that they have replaced their coffee machines with a Keurig machine and 12 to 15 assorted coffee flavors from Green Mountain. A simple search shows there are over 3000 stores alone and that adds up to a lot of painters drinking a lot of coffee.
When I checked out, I brought up the Keurig/coffee sales with the clerk. She said that sales had not gone down with softened economy but rather continue up. They now sell more than $17K per week in coffee in their store. She said that more businesses were coming in to buy for their office brewers. LOL
PUMP IT UP. U R SO FULL OF IT!!!
I am not pumper. I have owned stock for two years but sold my last shares at 68 a couple weeks ago. I am hoping for another opportunity to get back in. I am just a believer in the product. As for the rest of the "pumping" bs you acuse me of - Houston's economy rocks. In fact, maybe you should apply for the current job openings at the BBB I just visited then you could see the sales for yourself.
Successful investors should get all their information from retail sales clerks...LMAO!! Only here in the land of delusional Green Mountain could such commentary be posted, and then applauded by the numbskull pumpers.
You expect anyone to believe that the checkout girl at Bed Bath knows how much coffee the store sells?
Get real. If you are going to make up BS like most pumpers, try to at least tell a story that's believable, OK?
My gosh, Laney, you are right!!! How would the person who scans and bags the products have any clue about what does and does not sell??? Once again you have stunned us with your brilliance!!!
By the way, has GMCR topped out, or will we see $72 again?
Thanks for the write-up. I see this as the bubble climax. BB&B is not exactly on the front end of the curve---they can't afford to be experimenters when it comes to floor space.