Newman's Own in MCD for years; Ripe for a Deal Now?
One of the geniuses here suggested that MCD should sell "Green Mountain" coffee instead of "Newman's Own"... MCD well understands the Green Mountain quality and franchise opportunity... Green Mountain makes the Newman's own bleand for MCD.
Make sure your position (long or short) is ready for the bidding war that may already be underway for a Monday announcement at $50/share here! That would be a poetic final chapter in Einhorn's short story on GMCR. It would go like this:
"Arrived really early and bold as can be at the 'Helmet Shorts' party on GMCR, stayed #$%$ long -- long after everyone else had left, got ripping drunk on 4 bottles of Boone's farm by myself, and then someone turned off the lights without telling me, so down the stairs I went, head first for 3 stories."
See you all at $35 in a day or three.
Oh, some may not really grip what GMCR has coming, sale or no sale, in the "private label" business. Maybe a MCD blend on grocer's shelves in a couple months? See MCD's trademark news if you missed it this week. LOL Here's the part about MCD understanding what GMCR is all about (from 7 years ago).
McDonald's to Offer Organic Coffee
McDonald's to Start Selling Organic Coffee
By ROSS SNEYD, AP Business Writer
McDonald's Corp. will begin selling organic coffee at its New England restaurants next month, an arrangement that could propel growth for the Vermont-based roaster and help the fast-food chain compete for customers who avoid the Golden Arches in favor of a better cup of joe.
The deal calls for Green Mountain Coffee Roasters Inc., based in Waterbury, to supply Newman's Own Organics blend coffee to more than 650 McDonald's restaurants in Massachusetts, Connecticut, Rhode Island, Vermont, New Hampshire, Maine and in the Albany, N.Y., region.
Green Mountain Coffee earlier entered a separate deal to purchase beans, roast them and package them for Newman's Own. The coffee is certified as Fair Trade, a moniker that assures the beans are produced by farmers who are guaranteed a minimum wage for their harvests and are encouraged to practice organic and sustainable cultivation.
Steve Kerley, McDonald's regional vice president of operations, said pricing of the Newman's Own coffee would be set by franchise owners and he couldn't say whether there would be a premium. Whether the program is expanded nationally will be up to corporate officials at McDonald's headquarters in Oak Brook, Ill., he said.
More than 70 percent of the company's restaurants are run by franchisees.
Green Mountain Coffee sells its coffees through mail-order and directly to supermarkets, restaurants and convenience stores. The Newman's Own brand has been its best seller at supermarkets since it was introduced, said Robert Stiller, president and chief executive.
Mangement is no doubt just waiting to crush out Dave Einhorn any day now. ROFL