Green Mountain (GMCR) Losing K-Cup War; Private-Label Brands Selling for 50% Less
Tweet
Share
E-mail
Get Alerts GMCR Hot Sheet
Price: $91.67 --0%
Rating Summary:
5 Buy, 15 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 14 | New: 51
Rating Summary:
5 Buy, 15 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 14 | New: 51
Join SI Premium – FREE
Shares of Green Mountain (Nasdaq: GMCR) are lower on new analyst comments today, stating that the K-Cup proveyor is losing not just the shelf space battle, but the pricing war as well.
According to OTR, Green Mountain-branded K-Cups are losing shelf space at supermarkets as private-label brands jump on the recent patent expiration related to the K-Cup design.
OTR also noted that private-label brands are selling at a 50 percent per unit discount to the Green Mountain offerings, a metric that doesn't bode well if Green Mountain hopes to retain relevancy. Set to benefit is Treehouse Foods (NYSE: THS), said OTR, which is supply most of the private-label product.
Having been down as much as 5.6 percent Wednesday, Green Mountain shares are down just 3 percent in mid-morning trading. Notably, short interest on the stock is at 32.5 percent of float.
Tuesday, Green Mountain and Dr Pepper Snapple (NYSE: DPS) inked a new K-Cup deal for premium brewed teas. The stock ended 1.3 percent better.
According to OTR, Green Mountain-branded K-Cups are losing shelf space at supermarkets as private-label brands jump on the recent patent expiration related to the K-Cup design.
OTR also noted that private-label brands are selling at a 50 percent per unit discount to the Green Mountain offerings, a metric that doesn't bode well if Green Mountain hopes to retain relevancy. Set to benefit is Treehouse Foods (NYSE: THS), said OTR, which is supply most of the private-label product.
Having been down as much as 5.6 percent Wednesday, Green Mountain shares are down just 3 percent in mid-morning trading. Notably, short interest on the stock is at 32.5 percent of float.
Tuesday, Green Mountain and Dr Pepper Snapple (NYSE: DPS) inked a new K-Cup deal for premium brewed teas. The stock ended 1.3 percent better.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- BRF - Brasil Foods S.A. (BRFS3:BZ) (BRFS) PT Raised to BRL19 at Itau BBA
- HSBC Upgrades Savills Plc (SVS:LN) to Buy
- Darling Ingredients (DAR) PT Lowered to $62 at JPMorgan
Create E-mail Alert Related Categories
Analyst Comments, Trader TalkSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
