* Keurig Rivo to sell at select Bloomingdales stores
* Machine uses fresh milk; Starbucks' Vue uses pods
* Green Mountain shares up more than 2 percent
By Martinne Geller
Nov 8 Green Mountain Coffee Roasters Inc
announced the launch of Keurig Rivo, its long-awaited,
single-cup espresso machine, on Thursday, sending its shares up
more than 2 percent.
The Rivo, developed in partnership with Italy's Luigi
Lavazza SpA, will be able to make cappuccinos and lattes at home
and go head-to-head with the Verismo system, which Starbucks
Corp launched last month.
The Rivo will have a suggested retail price of $229.99 and
will be available exclusively at select Bloomingdales stores
starting in mid-November, becoming more widely available by the
The Rivo uses fresh milk for its barista-worthy drinks,
whereas the Verismo uses milk pods.
The basic Verismo sells for $199, while a larger version,
with temperature controls and self-cleaning is priced at $399.
Starbucks is also selling a separate machine that heats and
froths milk or dairy alternatives such as soy milk for about
SunTrust Robinson Humphrey analyst Bill Chappell said milk
appeared to be the biggest difference.
"From what we have learned about the Verismo, the use of
milk pods versus fresh milk seems to be its biggest drawback,"
Green Mountain has been facing increased competition since
certain patents governing the design of its K-Cups expired,
leading to the emergence of a host of lower-cost competitors,
including private-label brands that are producing
Keurig-compatible cups without a licensing agreement with Green
Green Mountain shares were up 60 cents, or 2.4 percent, at
$25.34 in morning trading.