Green Mountain (GMCR) Takes Share in K-Cups, Starbucks (SBUX) Declines, Category Grows

According to data from Nielson, Starbucks' (Nasdaq: SBUX) $-share in K-cups declined 70 bps in the four weeks ending March 16th. Starbuck's sequential $-share declined 70 bps to 15.8 percent. This was likely due to a pullback in K-cup promotions, thinks analyst Bonnie Herzog of Wells Fargo.

Meanwhile, Green Mountain Coffee Roasters (Nasdaq: GMCR) added 190 bps to $-share.

"Total KCups (all brands exprivate label) $ sales as a % of the ground coffee category were 26.5% down from 26.9% last period, although these do not include private label kcups, suggesting that kcups continue to take $ share of ground. Similarly, total KCups units (ex kcups) comprised 16.9% of the ground coffee category, from 17.3% last period. Total KCup (all brands) $ sales growth remains strong but decelerating increasing 35.7% this period, on a 36.4% increase in avg. eq. units and ~0.7% decrease in avg. eq. unit price,” said Herzog, citing the Nielson Data.

Wells Fargo has a Market Perform rating on Starbucks.

For an analyst ratings summary and ratings history on Starbucks (NASDAQ: SBUX) click here. For more ratings news on Starbucks click here.

Shares of Starbucks closed at $56.91 yesterday.

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