I have tried three of these new, robust flavor blends. They are richer and better than the GMCR versions, and while I have not tasted them side by side with SBUX French and italian roasts and not sure I could distinguish between them, they are at least as good as the SBUX versions. Our former view was that Peet's were too expensive and esoteric to matter... but now that they are competing on price, this will NOT be good for GMCR margins/volume, especially given that Whole Foods just jumped into the mix.
From Peet's Website:
French Roast - 4 Boxes of Single Cups (64 servings)
Item No. 505903
Available: Online Exclusive
Sale Price: $44.76
You save: $11.20 (20%)
Our darkest roast is not for the cautious. But these rich, glistening beans are a favorite of Peet’s roasters.
Stock up and save 20% when you buy 4 boxes.
It's the same French Roast you love, roasted by the same roasters, and treated with the same craft and care as the rest of our coffees… now available in convenient Single Cups.
Intensely bold and flavorful. Pronounced smoky overtones with a pleasant bite.
PEETS & STARBUCKS better quality coffee. Please. Over roasted and burnt for my taste, but to each his own. Maybe PEETs coffee is not selling and that is why they are just about giving it away, before it goes out of date. GMCR has some very dark roast that are by far better quality and don't have that burnt taste. I know some people like that.
Sentiment: Strong Buy
Shipment arrived today. Expiry is out to June 2014 and the cost to me is $.71 per pod plus tiny shipping charge. Much, I repeat MUCH better cup of coffee than gmcr's Italian roast... and again, i likely could not tell the difference between it and sbux's excellent dark italian roast with a blinfold on, but the peet's cup does seem a bit smoother (just as rich and full and both better than the gmcr version) this afternoon.
Since we first came on the board (with the stock at $18 last year suggesting that einhorn's 5 point short thesis was wrong on every point), you have consistently tried to refute anything remotely at odds with one way cheerleading for this company's products and future. That is dangerous thinking for your investment allocations over time.
Here, as usual, your myopic propensity to look at the story with rosy lenses misses a few key aspects.
First, Peet's brings to everything they do. No one who enjoys dark, robust blends and has tried Peet's exceptionally roasted and perfectly smooth and rich tasting would suggest that Peet's blends taste "over roasted and burnt." The reality, as I stated, is that peet's proprietary roasting is unequalled amongst the big players, including SBUX (which readers here know we have successfully owned several times for catalyst trades). I have NEVER had a cup of Peet's reg or ss that tasted overroasted or burnt, but as for SBUX robust blends with traditional beans (e.g., Verona) they at times do taste over-roasted and acidic -- but that is not burnt and more a function of intended flavor.
Second, if you enjoy GMCR's blends (i.e., including the ones that are not the dark roasts, you might want to try DNKN SS pods (own DNKN too). They share the mellower taste of many gmcr blends. On that note, you really ought to try some of the other Peet's blends, the ones that are NOT the rich, robust fuller roasts enjoyed by most gourmet coffee drinkers. I'll suggest 9 out of 10 coffee drinker who consider themselves serious drinkers would prefer Peet's over all comers.
Third, Peet's blends are not being given away. Regular prices are still comp with GMCR and sbux, but the new discounting seen this month is a heads up that revs and margins will be contested from here forward. Again, Kelley understands the point; bringing Peet's into the fold is important.
Fourth, "out of date"? Hardly, at odds with their DNA.
I wonder if the players thumbing this down have ever tried the Peets blends. They are better than the GMCR pods to be sure... the real issue here for GMCR, which kelley understands even if a blind bull does not, is that the Company needs to get Peets and the other guys making high quality SS pods without needing to pay licensing fees need to be convnced to come onto the GMCR team. If they can not do that, the neinhorn is right betting that over time GMCR's share will be eroded.
Of course, the new machines and whatever else GMCR can do to protect IP and licensing will continue to be a primary emphasis for gmcr, but these issues are more than the huffing of an angry and wounded short (einhorn)... this Q and next will be interesting to study.
The only thing eroding is Einhorn's attempt to keep GMCR down. Einhorn knows he needs to reduce his short or he will lose all credibility with his fund and his reputation. I believe Einhorn's results last year speak for themselves.
It's only a matter of time and Einhorn will be pushed out by the large players just like Ackerman. An example will be set period!
Can someone tell me what happens to all non license labels making K cups when one day over the next year or two the K cup brewer is phased out of production? Are all these companies goin to manufacture it themselves with patents on it stay in affect ? There is still a bullish case to me made at the right PPS. This ofcourse is with no other smart product development from GMCR which would only strengthen the bullish case
hyperinflationhyenas: Since all companies come out with Big & Better, you shouldl be holding no stocks, not even food stocks. How silly you are. Why are you even on this board? Everyone has a sale. Car companies, clothing, you name it. As long as Kcups makes the coffee, the company makes money.
Sentiment: Strong Buy