Starbucks to Roll Out Single-Serve Coffeemaker

Starbucks (Nasdaq: SBUX  ) is entering into the single-cup coffee machine business, hoping to bring its signature taste and brand straight to American households. The product will be called the Verismo, the company announced yesterday, and it enables users to use fresh milk via the company’s new “milk pods.” The machine will be offered in two different models, retailing for $199 and $399.

The coffee giant has taken notice as the craze over single-cup coffee makers has grown to a multibillion-dollar business annually, with sales growing more than 140% last year alone.

While previously Starbucks had partnered with Green Mountain Coffee Roasters (Nasdaq: GMCR  ) on K-Cups for Green Mountain’s Keurig machines, the two coffee titans are now directly competing with one another. Starbucks plans to make its own cups for the Verismo, and Green Mountain’s CEO stated yesterday that his company would be releasing its own single-serve espresso machine.   

The coffee industry moves pretty quickly. Check out The Motley Fool’s premium report on Green Mountain Coffee Roasters to stay up to date on the risks and opportunities facing the company.

Fool contributor John Divine owns no shares in any company mentioned above. You can follow him on Twitter @divinebizkid and on Motley Fool CAPS @TMFDivine.

The Motley Fool owns shares of Starbucks. Motley Fool newsletter services have recommended buying shares of Starbucks and Green Mountain Coffee Roasters. Motley Fool newsletter services have recommended writing covered calls on Starbucks. Motley Fool newsletter services have recommended creating a lurking gator position in Green Mountain Coffee Roasters. The Motley Fool has a disclosure policy.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.


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7/25/2014 4:00 PM
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