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Is Supervalu's New Launch a Smart Move?

Supervalu (NYSE: SVU  ) aims to launch its new single serve coffee pods, which will be compatible with leading brewing systems. Though it won't be a big needle mover for the company, the pods will begin being sold this month at 1,100 locations. This move comes as more of a blow to Green Mountain Coffee Roasters (Nasdaq: GMCR  ) . Both companies face uncertain futures, but there's a big probability that GMCR will downsize to a lower cost manufacturer with a narrow margin, with Supervalu possibly selling off to private companies.

With Green Mountain as cheap as it's ever been, many investors are wondering whether this is the end of the former market darling, or the perfect entry point for an enourmous rebound. You can find our recommendation for how to play the company in our new premium research report. In it, you'll find everything you need to know about Green Mountain, including whether it's a buy at today's prices. Click here for instant access. 

Andrew Tonner has no positions in the stocks mentioned above. Austin Smith owns shares of SUPERVALU INC. The Motley Fool owns shares of Starbucks and SUPERVALU INC. and is short Starbucks, and has the following options: long DEC 2012 $16.00 puts on Green Mountain Coffee Roasters and short DEC 2012 $21.00 calls on Green Mountain Coffee Roasters. Motley Fool newsletter services recommend Green Mountain Coffee Roasters and Starbucks. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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  • Report this Comment On September 07, 2012, at 9:59 AM, cruzn59 wrote:

    As I said yesterday, the Motley Fool high level staff can be proven to have large shorts interests in GMCR. Each time the stock goes up, the writers are assigned the task of writing a blog slam to call into question the upswing in stock value. You never come out and do this openly, but under the sly, the guise of doubt. Why can't you just admit your wrong? We all are from time to time. I am often wrong. I admit it. In this writing though it is too coincidental for all the negativity from you and Seeking Alpha and well as Herb Greenberg on CNBC.

  • Report this Comment On September 07, 2012, at 10:05 AM, cruzn59 wrote:

    Negative blog for gmcr, writers must represent those with heavy short interest at present.

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