I don't know about you, but one of the first things I do each morning is press the power button on my Keurig brewer from the wonderful minds at Green Mountain Coffee Roasters (NASDAQ:GMCR). Then I pop in a K-Cup pack, eagerly wait for the display to show "Ready to Brew," and joyfully press the "Brew" button.
For better or worse, I absolutely need my daily dose of caffeine to get the day rolling. And really, it's amazing how the gratification of having a perfect cup of hot coffee ready in less than two minutes never gets old.
Of course, summer is fast approaching, and the folks at Green Mountain Coffee are doing all they can to remind consumers that that's not the only way they can enjoy their brewers.
In fact, in a press release Wednesday, the company announced a new partnership with Dr Pepper Snapple (NYSE:DPS), through the official launch of three new Snapple K-Cup packs featuring Peach Iced Tea, Lemon Iced Tea, and Raspberry Iced Tea flavors.
Naturally, Green Mountain wasted no time sprucing up their webpage to spread the news:
Of course, using your Keurig to brew over ice certainly isn't a brand-new concept: Green Mountain already has an aptly named "Brew Over Ice" section on its website featuring its own brand of iced coffee drinks, as well as a variety of iced teas and vitamin-infused flavors that were launched last year with the help of Hain Celestial's Celestial Seasonings brand.
While Hain's Celestial Seasonings flavors are all well and good, however, it's hard to argue with the superior brand recognition offered by Snapple and its "Made from the Best Stuff on Earth" catchphrase. What's more, this deal can only serve to help Green Mountain demand that much more shelf space at your friendly neighborhood grocer.
Even better, when you combine Wednesday's news with Green Mountain's freshly renewed five-year partnership with Starbucks -- which, incidentally, tripled the number of Starbucks products the company is allowed to offer for their Keurig platform -- it's easy to see why management was comfortable reiterating their long-term annual net sales growth outlook of 15% to 20%.
Foolish bottom line
In the end, it's increasingly looking as though nothing can stop Green Mountain's meteoric rise. As a result, even with the stock trading at nearly 31 times trailing earnings, and 22.4 times forward estimates, I'm convinced that Green Mountain remains a solid buy for long-term investors.
Fool contributor Steve Symington has no position in any stocks mentioned. The Motley Fool recommends Green Mountain Coffee Roasters, Hain Celestial, and Starbucks. The Motley Fool owns shares of Hain Celestial 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.