Market Overview

OTR Global: Green Mountain Coffee Losing K-Cup Share

According to a pre-market report on Wednesday by OTR Global, Green Mountain Coffee Roasters (NASDAQ: GMCR) is losing market share in the all important, fast-growing single-serve coffee market.

OTR identifies private label makers such as Treehouse (NYSE: THS) and others gaining market share at the expense of Green Mountain whose Keurig packs tend to be higher priced.

Green Mountain's key patents on K-cup technology expired in 2012, opening up private label makers to enter the lucrative market. Retailers such as Treehouse, Kroger (NYSE: KG) and Whole Foods Market (NYSE: WFM) have been selling their cheaper, private label K-cup brands side by side with the more expensive brand names.

Related: Crocs Said to Explore Strategic Options

Private label products are presenting a serious challenge as consumers continue to feel comfortable making these purchases and aren't “embarrassed” at buying what is generally perceived to be inferior products.

In a press release, Starbucks (NASDAQ: SBUX) identified the single-serve market to be growing at nine times faster than the overall coffee market.

Shares of Green Mountain were trading lower by 2.2 percent in pre-market following the report, but have recovered more than half of the losses since. Shares were seen trading lower by less than 1 percent at 12:00PM.

Posted-In: OTR GlobalNews Retail Sales Best of Benzinga

 

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