GMCR (Keurig) is about to take on Starbucks

Discussion in 'Stocks' started by javaman, Feb 14, 2012.

  1. javaman


    well the rumors are starting to really fly and they are going to start selling units any day now so I might as well spill the beans. Pun Intended.

    the more google aware among you have surely realized that GMCR's craziness hasn't been because of Greece or even the holiday earnings surprise. No, the real reason behind the swings has been because of the v-cup machines. online research will reveal that the v-cups are widely speculated to have patented RFID chips in them, are incompatible with k-cup machines and cups, and are going to be released this very soon. They do, they are, and they will be. But that's only the hook. It's a good hook, one that will protect them from third party undercuts, but it's still just the hook.

    Here's the bait: the new machines do espresso (possibly not quite as strong as traditional espresso, I'm hearing conflicting reports on that front, but either way the taster response is very positive), cappuccino and latte. And you don't have to fill them with milk, either. The new v-cups have two sections, one of which is filled with milk concentrate. The milk concentrate, optionally with extra flavors, mixes with water, gets frothed, and the result is something that looks exactly like it came from a coffee shop. No need to refrigerate or refill anything. Just like k-cups.

    the surprising thing is, my friend swears they actually taste very, very close to coffee shop cappuccinos and lattes as well.

    so yeah, for years now a lot of people have been objecting that the overpriced but convenient Keurig can't hold its ground against Mr. Coffee + "Great Value" brand arabica beans. Not sure I agree (for instance people still can't get enough of AAPL's overpriced stuff for some reason), but I couldn't deny that in a potentially bear market the argument did have some merit.

    But it's no longer just Keurig vs. Mr. Coffee. Now, it's Keurig vs. Starbucks (their licensing deals not withstanding), with Keurig being the cheaper AND more convenient option.

    And the commercial models are going to be cheap and low-hassle enough that even dinky mom & pop restaurants can start offering Keurig cappuccinos. Or will it have the Starbucks logo on the menu, but be via a Keurig machine? Or will they just freakin' merge already? Wish I had answers for those.

    Anyway. Interesting stuff, eh?
  2. nursebee


    First post from new member???? way too transparent
  3. zdreg


    visit your starbucks. try to get a seat.
  4. Illum


    Sounds exciting Javaman. Oh and remember. Debits to the left, credits to the right. After you have that, try to not claim one is the other. goodluck
  5. _PD_


    LOL !!