Shares of coffee maker Keurig Green Mountain Inc. (GMCR) hit a new 52-week high of $128.04 on Jun 17, 2014, recording a healthy year-to-date return of 68.2%.
Growth Drivers
Keurig Green Mountain shares have been on the rise this year as it reaps benefits from its several strategic alliances, which help it to maintain a leading position in the single serve brewing category.
KeurigGreen Mountain recently signed a deal with America’s most popular restaurant Subway to widen the homemade single-serve coffee options for Keurig users. Under the agreement, Keurig Green Mountain’s new K150 brewer series will be installed at the Subway restaurants across the U.S.
Earlier this year, Keurig Green Mountaininked a multi-year agreement with Italy’s coffee company Luigi Lavazza SpA under which Lavazza SpA’s flagship coffee Lavazza will now be available in K-Cup packs for use on Keurig brewers.
http://ww25.canadamutualfundsmarket.com/stock/news/123994/Green-Mountain-Lavazza-Pen-Keurig-Deal
Moreover, in order to increase its brand power, it has inked a 10-year partnership deal with the beverage giant – The Coca Cola Company (KO), under which Keurig Green Mountain will exclusively make Coca-Cola branded pods for use on its upcoming Keurig Cold at-home beverage system for making cold beverages. Coca-Cola will also work with Keurig Green Mountain on the development and launch of this latest version of Keurig single-cup brewer.
http://www.zacks.com/stock/news/124836/Green-MountainCoca-Cola-Close-Deal
Keurig Green Mountain also has several strategic distribution agreements to incorporate popular brands like Dunkin’ Brands Group Inc. (DNKN) and Starbucks Corp. (SBUX) into its portion pack system.
Investors are encouraged by these strategies which further Keurig Green Mountain’s goal of sustaining its dominance in the single-serve brewing market even after the expiry of its K-cup patents in Sep 2012. Through these agreements, Green Mountain is aligning with the strongest beverage brands to support a range of consumer choices and taste profiles in Keurig Single-Cup Brewing system.
Moreover, the Zacks Rank #3 (Hold) company is foraying into the cold beverage and soda market. It will launch the new Keurig brewer The Keurig Cold Machine — which will make sodas, sports drinks and other beverages using pods at the touch of a button — in the second half of fiscal 2014.
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