Green Mountain Brews in V500

Zacks

The leading coffee brewer Green Mountain Coffee Roasters Inc. (GMCR) has unveiled Keurig Vue 500, the newest addition to the family of Vue brewing system models.

The new brewing model comes at a lower introductory price of $169.99 and includes some of the most popular features of its existing brewing systems such as auto on/off, strength of the brew, temperature control, energy saver mode, speed and size selection.

Apart from V500, the Keurig Vue Brewing System has provided its customers with advanced brewing options in the form of its Vue 700 and Vue 600 machines.

Green Mountain, which has until now dominated the U.S. market with its innovative Keurig Single Cup brewing technology, is facing increased competition from lower-cost rivals like Starbucks Corporation’s (SBUX) latest premium single cup domestic coffee machine, Verismo.

 Green Mountain is focusing on its products and putting in efforts to turn around its business after its K-cup patents expired in Sep 2012. Apart from rolling out new products, the company is upgrading its Keurig brewing system. It introduced a new Keurig Vue V1200 Brewer, designed with RFID (radio frequency identification) technology, allowing users to have control over the strength, size and temperature of their beverages.

Further, consumer appeal for Green Mountain remains strong even after its patents for the K-cups expired in Sep 2013. Green Mountain’s owned and partnered brands are priced at the same level as that of its aggressive competitor Mondelez International Inc..'s (MDLZ) unlicensed Maxwell House and Gevalia single-serve coffee pods compatible with Keurig brewing systems, thus ruling out competition.

Green Mountain is also focusing on competing with private labels, as it has entered into an agreement with Costco Wholesale Corp. (COST) under which it will produce private-label Costco Kirkl and Signature brand K-Cup packs for the Keurig single-cup brewing system. Green Mountain currently carries a Zacks Rank #1 (Strong Buy).

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