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Keurig Green Mountain to Serve Meijer Coffee in K-Cups

Zacks Equity Research

Keurig Green Mountain Inc. (GMCR) announced a strategic agreement with grocery retailer Meijer to offer the latter’s Meijer coffee in Keurig Green’s K-Cups. The Meijer coffee K-Cup packs will bear the Keurig brewed seal and be available exclusively at Meijer outlets.

Based in Grand Rapids, MI, Meijer operates 213 supercenters and grocery stores throughout Michigan, Ohio, Indiana, Illinois and Kentucky.

The deal will drive Meijer’s coffee sales backed by the convenience of Keurig brewers. The pact would also help Keurig Green Mountain’s goal of sustaining its dominance in the single-serve brewing market after the K-Cup patent expired in Sep 2012.

KeurigGreen Mountain currently carrying a Zacks Rank #3 (Hold) aims to popularize the single-cup brewing system in America and has roped in big brands like Dunkin’ Brands Group Inc. (DNKN) Unilever plc. (UL) and Starbucks Corp. (SBUX) to its portion pack systems through strategic distribution agreements.

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Earlier this month, Keurig Green Mountain announced a strategic agreement with its authorized distributor, W.B. Mason Company, to offer the latter’s Shazam coffee in Keurig Green’s K-Cups. In Aug 2014, Keurig also inked a licensing, manufacturing and distribution agreement with Kraft Foods Group Inc. (KRFT) under which Kraft’s branded coffees like Maxwell House, Gevali, Yuban and McCafe brands will be available in Keurig portion packs compatible with Keurig’s commercial brewing systems. (Read: Keurig Green Mountain Shares Soar on Kraft DeaI)

Investors are encouraged by these initiatives that would help Keurig Green Mountain in maintaining its leading position in the market. Through these agreements, the coffee maker is aligning with the strongest beverage brands to support a range of consumer choices and taste profiles under the Keurig Single-Cup Brewing system.

Read the Full Research Report on GMCR
Read the Full Research Report on UL
Read the Full Research Report on SBUX
Read the Full Research Report on DNKN


Zacks Investment Research