Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
So what: Green Mountain Coffee Roasters
Now what: Starbucks' revenue fell in 2009 because of consumer spending cutbacks and increasing competition from lower-priced offerings. As many consumers switched to brewing their own to save money, Keurig machines were a big winner. The established and growing network of Keurig owners were not likely to invest in a different brewing machine and would remain difficult for Starbucks to access without a deal like the one announced today.
Interested in more info on Starbucks? Add it to your watchlist by clicking here.