Green Mountain (GMCR) Lower on News Kroger (KR) Bringing Store-Branded K-Cups

June 11, 2012 9:52 AM EDT
After starting higher on news Kroger (NYSE: KR) will start selling store-branded K-Cups, Green Mountain Coffee Roasters (Nasdaq: GMCR) took a turn lower as one issue pops into traders minds on the news: lower margins.

A spokesperson for the nation's largest supermarket chain confirmed it is planning to introduce single-serve coffee cups compatible with Green Mountain's Keurig brewers, Reuters reported. Keurig may not be the only system Kroger will introduce cups for, the spokesperson said.

It is unclear if the Kroger news is related to a partnership with Green Mountain, or if Kroger will be waiting for patent expiration on the K-cup - which will cut Green Mountain entirely out of the equation.

Shares of Green Mountain are down 4 percent.

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