Green Mountain Coffee Roasters
Green Mountain's machines will only dispense K-Cups of premium coffee, tea, and cocoa. Buyers can then create their own fresh, hot beverages with an adjacent Keurig single-cup brewer.
This approach offers a perfect solution for commercial settings like a company break room or a hospital's waiting room, where the proprietor wants to offer access to coffee without giving it away.
These machines probably won't contribute materially to Green Mountain's financial performance -- not initially, anyway. The company moved 432 million K-Cup units in its latest quarter, so it's hard to see these single-unit dispensers moving the needle much. Instead, their benefit lies in the free advertising they offer.
Companies can stock up to a dozen different varieties of K-Cups in the machines, and they don't have to be just the namesake brands. Third-party brands including Caribou Coffee
The machines could also encourage users to purchase their own K-Cup systems for home use, once they see how easy it is to operate Keurig brewers. After all, now that even Wal-Mart
In short, this is just one more reason for the baristas at Starbucks
Some other Green Mountain sips:
Green Mountain Coffee Roasters is a Motley Fool Rule Breakers pick. Starbucks is a Motley Fool Stock Advisor recommendation. Starbucks and Wal-Mart Stores are Motley Fool Inside Value recommendations. The Fool owns shares of Starbucks. Try any of our Foolish newsletter services free for 30 days.
Longtime Fool contributor Rick Munarriz can walk to three Starbucks locations from his home, but he's still not much of a coffee drinker. He's had a Keurig brewer in his home for two years now. Rick owns no shares in any of the companies in this story and is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.