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Green Mountain Coffee Roasters Inc. (GMCR), Campbell Soup Company (CPB): Soup’s Up

Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) faces direct competition with Farmer Brothers Co. (NASDAQ:FARM). Farmer Brothers makes coffee products in addition to other food products, such as gravy, pancake, and biscuit mixes. The company is not profitable and had slower quarterly revenue growth of 4% last quarter.

Farmer Brothers Co. (NASDAQ:FARM) has a gross margin of 38%, which is slightly higher than Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) 37%, but its other ratios such as profit and operating margins are below zero. Overall, I think Green Mountain is a superior company.

The new partnership with Campbell Soup Company (NYSE:CPB) has shown Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR)’s creativity and potential for innovation. When this is paired with the company’s new Bolt system and recent performance, I think the future looks bright for the coffee company. I think Green Mountain is a good investment.

The article Innovation Will Help This Coffee Company originally appeared on

Ben Popkin has no position in any stocks mentioned. The Motley Fool recommends Green Mountain Coffee Roasters. 

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