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), Starbucks Corporation (SBUX): More than Enough Coffee to Go Around

Page 1 of 2

My instinct a few months ago would have been to avoid Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR), and I would have been foolish in the short-term. However, I still remain uncertain about the long-term outlook for the company.

Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR)’s price recovery raises expectations. The company can be profitable without significant growth–that means that the company can stay in business, but might not be able to keep the price rising. The Starbucks Corporation (NASDAQ:SBUX) news provides the most important piece of the puzzle.

Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR)

Partnership between rivals?

Starbucks Corporation (NASDAQ:SBUX) and Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) have renewed their partnership to offer Starbucks Corporation (NASDAQ:SBUX) coffee in Keurig machines with single serve K-cups. Starbucks Corporation (NASDAQ:SBUX) has entered the single-serve market itself with its Verismo machines, which are not compatible with K-cups.

A lot of people own Keurig machines, and the switch to Verismo is not going to happen very fast. Starbucks Corporation (NASDAQ:SBUX) has a substantial fan base that bought Keurig machines over the years. The deal goes beyond extending the status quo. Starbucks Corporation (NASDAQ:SBUX) will be adding Seattle’s Best and Teavana K-cups. The Verismo seems targeted at Starbucks fans, as most of the marketing appears in the stores and on the website. The marketing for Keurig is more extensive.

Enter Rubi

Seattle’s Best will also be coming to a few square feet near you in the form of the Coinstar, Inc. (NASDAQ:CSTR) Rubi machines. I still have yet to find a machine to try, but I eagerly await the chance. Coinstar, Inc. (NASDAQ:CSTR) is an extremely innovative company, and it is frequently underestimated. The coin machines are now integrated with PayPal, allowing you to add and request money from your Paypal account at the machine.

The Rubi looks impressive, and is seeing significant traffic at the locations in which it has been installed. It should provide an additional revenue stream for Starbucks in the Seattle’s Best brand, especially after the shutdown of Borders.

The final thing for Coinstar are its beauty product kiosks, which have massive potential. These machines dispense samples of beauty products for $1 so that consumers can try out a product. This leads to a lot of opportunities to partner with companies coming out with new beauty products.

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!