Green Mountain (GMCR) Sees Pressure On Starbucks (SBUX) Schultz Memo
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Shares of Green Mountain (Nasdaq: GMCR) fell mid-day after an internal memo from Starbuck's (Nasdaq: SBUX) CEO Howard Schultz suggested that the coffee giant could go it alone in the single-serve market instead of teaming with Green Mountain.
In the memo, Schultz said "patents alone do not determine market winners... best-in-class experiences and quality do."
With its contract with Kraft (NYSE: KFT) ending soon, there has been a lot of speculation that Starbucks will team with Green Mountain, which makes the popular Keurig single-serve coffee machine.
In the memo, Schultz praised Green Mountain for its first mover advantage, put also suggested Starbucks will make its own bold moves.
Earlier this week, Starbucks struck a deal with Courtesy Products to provide Starbucks ground coffees for use in Courtesy’s patented CV1 in-room and on-demand brewed coffee system in up to 500,000 luxury and premium hotel rooms across the U.S.
Shares of Green Mountain are down 4 percent.
Update: A copy of the internal member from Schultz can be found here.
Update 2: Shares of Green Mountain finished the day down 7.7 percent.
In the memo, Schultz said "patents alone do not determine market winners... best-in-class experiences and quality do."
With its contract with Kraft (NYSE: KFT) ending soon, there has been a lot of speculation that Starbucks will team with Green Mountain, which makes the popular Keurig single-serve coffee machine.
In the memo, Schultz praised Green Mountain for its first mover advantage, put also suggested Starbucks will make its own bold moves.
Earlier this week, Starbucks struck a deal with Courtesy Products to provide Starbucks ground coffees for use in Courtesy’s patented CV1 in-room and on-demand brewed coffee system in up to 500,000 luxury and premium hotel rooms across the U.S.
Shares of Green Mountain are down 4 percent.
Update: A copy of the internal member from Schultz can be found here.
Update 2: Shares of Green Mountain finished the day down 7.7 percent.
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