Starbucks' (SBUX) Schultz Says Committed to Green Mountain (GMCR), But Investors Sweat
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Investors in Green Mountain Coffee Roasters Inc. (NASDAQ: GMCR) are having a nerve-racking day Thursday with partner Starbucks (NASDAQ: SBUX) officially launching its single cup system - Verismo - for caffe Lattes, espresso, and brewed coffee.
Starbucks' CEO Howard Schultz took to CNBC's airwaves to promote the new system and of course the partnership with Green Mountain took center stage.
Schultz said the company is committed to its relationship with Green Mountain 'for the time being' and the press about a 'coffee-war' between the two is just not accurate. Despite K-Cup patent going away this weekend, Schultz said Starbucks customer are not looking for private label brands and wants to stick with the Starbucks brand.
Commenting on worries about waste from single-cup pods, Schultz said they are working on a next-gen of single-cup pods that will be more environmentally friendly.
The Verismo will hit Macy's and other retail stores in the first week of October and Starbucks stores in mid-October. The machine comes in an assortment of colors, including silver, black, burgundy, and champagne, and is available in two design options, the 580 base model and the V·585, which offers additional features, including LED display and temperature control, for $199 and $399, respectively.
In addition to discussing Verismo, Schultz said the worst is over in Europe. He also said the Asia/China business is strong and is confident in the U.S. economy.
Shares of Green Mountain are down 5.6 percent, while Starbucks is up 1.4 percent.
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Investors in Green Mountain Coffee Roasters Inc. (NASDAQ: GMCR) are having a nerve-racking day Thursday with partner Starbucks (NASDAQ: SBUX) officially launching its single cup system - Verismo - for caffe Lattes, espresso, and brewed coffee.
Starbucks' CEO Howard Schultz took to CNBC's airwaves to promote the new system and of course the partnership with Green Mountain took center stage.
Schultz said the company is committed to its relationship with Green Mountain 'for the time being' and the press about a 'coffee-war' between the two is just not accurate. Despite K-Cup patent going away this weekend, Schultz said Starbucks customer are not looking for private label brands and wants to stick with the Starbucks brand.
Commenting on worries about waste from single-cup pods, Schultz said they are working on a next-gen of single-cup pods that will be more environmentally friendly.
The Verismo will hit Macy's and other retail stores in the first week of October and Starbucks stores in mid-October. The machine comes in an assortment of colors, including silver, black, burgundy, and champagne, and is available in two design options, the 580 base model and the V·585, which offers additional features, including LED display and temperature control, for $199 and $399, respectively.
In addition to discussing Verismo, Schultz said the worst is over in Europe. He also said the Asia/China business is strong and is confident in the U.S. economy.
Shares of Green Mountain are down 5.6 percent, while Starbucks is up 1.4 percent.
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