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Green Mountain Opens Keurig Store

Zacks Equity Research

Coffee maker Green Mountain Coffee Roasters Inc. (GMCR) is setting up a Keurig store in order to increase the penetration of its Keurig Brewers among U.S. households. The store, first of its kind in the U.S., will be operational by Nov 2013.

The Burlington, MA-based store is very near to Green Mountain’s research and development centre. The store offers unique opportunity to the visitors to familiarize consumers with the single-cup brewing system like Keurig K-Cup, Keurig Vue and Keurig Rivo. An interactive tool (aimed at customers who are new to the single-serve brewing system) will be provided to demonstrate the methods of operating the brewers.

Moreover, the store provides a unique opportunity to enjoy the flexibility of choosing beverages among the 200 varieties of Keurig Brewed coffees, teas, hot cocoas, specialty and Brew Over Ice beverages. The ‘Pick a Pack’ system allows the customers to mix-and-match several flavors. The 3-count, 6-count and 12-count boxes allow the customers to sample different flavors without having to buy a full single-flavor box.

The Keurig store will help GMCR increase its installed base to its targeted 16 million by the end of fiscal 2013. Moreover, it has several projects in the pipeline to expand both its ‘away-from-home’ and ‘at-home’ channels. From the beginning of this year, Green Mountain has been roping in consumer staple companies like Unilever Plc. (UL), Starbucks Corporation (SBUX) and Dunkin’ Brands Group Inc. (DNKN) into its Keurig distribution system to increase the popularity of this single-serve brewer.

Through these agreements, Green Mountain is aligning with the strongest beverage brands to support a range of consumer choices and taste profiles in Keurig Single-Cup Brewing system.

Green Mountain currently carries a Zacks Rank #1 (Strong Buy).

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