On reports from Bloomberg, the leading specialty coffee brewer Green Mountain Coffee Roasters Inc.’s (GMCR) shares soared 6.3%, following the company’s filing for a U.S. trademark application for a soda machine, reports Bloomberg.
The shares of GMCR closed $73.19 in Jul 15, 2013. The soda machine is expected to create competition for Israel-based SodaStream International Limited’s (SODA) soda-making systems. Apart from producing soda the the new machine of GMCR will also prepare still, carbonated and sparkling beverages.
Green Mountain is planning to turn around its business after its K-cup patents expired in Sep 2012. Apart from launching new products, the company is upgrading its Keurig brewing system. Last week, it introduced the Keurig BOLT Café Brewing System that has the ability to brew a 64-ounce pot of coffee in two minutes. With this innovation Keurig brewers go another step forward in its higher volume batch-brewing capacity.
In May 2013, it launched the Keurig Vue V1200 Brewer and V500 Brewer, designed with RFID (radio frequency identification) technology, allowing users to control the strength, size and temperature of their beverages.
Moreover, since March 2013 Green Mountain is roping in more and more beverage giants into its Keurig distribution system to increase the popularity of this single serve brewer. In March 2013, it formed a strategic alliance with Unilever plc. (UL) under which the Lipton iced teas will be available in the K-cups of GMCR’s Keurig business unit. Again, in May 2013, the coffee giant joined forces with The Coffee Bean & Tea Leaf to launch the Coffee Bean & Tea Leaf K-Cup for Keurig single-cup.
Green Mountain aims to popularize the single-cup brewing system in America and has therefore, entered into several strategic distribution agreements to rope in popular brands like Dunkin’ Brands Group Inc. (DNKN) and Starbucks Corporation (SBUX).
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.
Green Mountain currently carries a Zacks Rank #1 (Strong Buy).
More From Zacks.com