Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Green Mountain Coffee Roasters Inc. (GMCR) is Losing its Taste! – Starbucks Corporation (SBUX)

Page 1 of 2

Things have not been going so well for Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) lately, and it’s losing the taste for profits. There are many reasons for the decline in profits, including patent expiration, terrible promotions, and new products that just aren’t taking off as they should be. Despite these problems Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR)’s share price still wants to edge higher, going from $45 a share in early February to where it is now at $54 a share in March. So what is causing this rise in stock price? Can it be justified considering all the problems the company faces? Let’s take a close look at the financials and competitors and see just how much value Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) can generate for investors.

Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR)Patent Expiration is a Drag

As of September 2012 the patents on the K-cup expired, and this didn’t seem to help the bottom line for Green Mountain Coffee. As we know from other corporations, patent expiration is never fun to deal with.  There are many competitors who are launching their own K-cup products, and the sad part is that Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) receives no royalty payments from these products. The patent expiration kind of forced the company to start doing outrageous promotions just to keep customers buying its K-cup products. One promotion was for an online coupon that allowed customers to take $10 off for any products purchased that were $10 or more. In essence the company was giving away coffee for free just to show more sales and possibly to bring new customers to its brand of products.

New Product to the Rescue

So with the patent expiration problem and having to do a promotion that causes losses in revenue, what can be added to the pipeline of products that will help turn the company around. Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) has now unveiled the new “Vue V500 Brewing system.” This new product is added to the list of other Kuerig Vue products that combines the Kuerig’s single serve ability with popular customizable features of the Vue system. I think it is good that Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) is taking the initiative to deal with its patent expiration and slowing sales of its K-cup products. Whether or not this new system will serve investors with future profits remains to be seen, but I think Green Mountain Coffee will have to handle a lot of pressure from its competitors to stay alive in the coffee business.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!