GMCR's New Latte in Vue Packs

Zacks

Coffee maker Green Mountain Coffee Roasters Inc. (GMCR) has introduced Café Escapes Latte Creators, available in Keurig Vue Packs, which are made with diary ingredients that carries the REAL seal which ensures that the diary product meets strict manufacturing requirements.

The Café Escapes frother packs are available in two flavors -- Creamy Latte and Chocolate Mocha. Café Escapes is part of GMCR’s two-step Café Beverage collection made for Keurig Vue brewers, a higher end brewing system.

The Vue brewer can brew cappuccinos and lattes using dairy frother packs, but it requires its own, exclusive coffee pods instead of K-Cups. The new drink carries less than 100 calories per cup and comes in 16-count boxes available online as well as at select national retailers for $11.99.

The new latte has strengthened the already-rich brand portfolio of GMCR’s coffee, tea and other beverages which boasts brand names like Green Mountain Coffee, Tully’s Coffee, Diedrich Coffee, Van Houtte, Timothy’s World Coffee brand and others. The popular flavor is expected to boost Green Mountain’s sales in the coming quarters.           

Green Mountain is also introducing new flavors. In August, GMCR offered its users the option of brewing creamy, spicy pumpkin lattes in their brewers in anticipation of the fall season.

In order to popularize the single-cup brewing system, Green Mountain has entered into several strategic agreements with companies like Dunkin’ Brands Group Inc. (DNKN), Unilever Plc. (UL) and Starbucks Corporation (SBUX) to distribute their brands through GMCR’s K-Cups.

Management believes that there are ample opportunities for expanding its Keurig system in the domestic market. In its third-quarter 2013 results reported last week, the Zacks Rank #1 (Strong Buy) company raised its fiscal 2013 outlook to reflect the strong momentum of its Keurig business unit.

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