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As if Green Mountain Coffee Roasters (Nasdaq: GMCR ) weren't selling its Keurig single-cup brewers quickly enough, it now has Mr. Coffee on its side, too.
Jarden's (NYSE: JAH ) iconic Mr. Coffee is teaming up with Green Mountain to develop single-cup coffeemakers that use Green Mountain's wildly popular K-Cup portion packs. This agreement is similar to the licensing and distribution deal that Conair's Cuisinart struck with Green Mountain earlier this month.
So let's take a roll call of the Keurig army.
- Keurig parent Green Mountain has done amazingly well. It moved 479,000 single-cup brewers this past quarter, after shipping a whopping 711,000 K-Cup brewers during the holiday quarter.
- Cuisinart is hitting the market with its K-Cup brewer.
- And now, so is Mr. Coffee.
"I would hate for Green Mountain to wake up one day and see Mr. Coffee in the mirror," I wrote earlier this year, when I recommended the stock to Motley Fool Rule Breakers subscribers. But I was referring to having this growth stock settling for a life of kitchen hardware. If Green Mountain is staring at Mr. Coffee on the other side of a negotiating table, brokering a deal that will populate the planet with yet more machines that require K-Cup refills, I'm all for that.
See, Green Mountain essentially sells its Keurig machines at cost. The real money comes in the high-margin K-Cup sales. There were 432 million K-Cup refills sold during the company's most recent quarter.
Oh, and that was before Wal-Mart (NYSE: WMT ) came onboard, stocking an entry-level Keurig brewer and K-Cup portion packs.
If you're wondering why there's a little more elbow room at your local Starbucks (Nasdaq: SBUX ) store, maybe it's because Green Mountain has moved nearly 1.2 million Keurig single-cup brewers over the past two quarters. Don't just blame the McCafe push at McDonald's (NYSE: MCD ) when hundreds of millions of java-seeking mugs are being filled quarterly by K-Cups instead.
Who will be the next to enlist in Green Mountain's Keurig army?
Some other Green Mountain sips: