Oct 9 Green Mountain Coffee Roasters Inc
struck a deal with Dr Pepper Snapple Group Inc
to offer Snapple iced teas in single-serve packs for its Keurig
and Vue brewers, the companies said on Tuesday.
The deal, which complements similar ones with Starbucks
, Dunkin' Brands Group Inc and Caribou Coffee
Co, comes as Green Mountain is working to fend off
competition from lower-cost rivals, including private-label
The addition of Snapple "demonstrates Green Mountain's
ability to attract and align itself with the best consumer
brands, further bolstering its variety of offerings and
relevance to consumers," Lazard Capital analyst Matthew DiFrisco
The Snapple K-Cup pack iced teas will be available in the
United States and Canada in spring 2013, with Vue packs to
follow, the companies said in a joint statement on Tuesday.
Green Mountain's stock has been under pressure as investors
have been concerned that recent rebates on coffee brewers would
hurt the company's profit margins. But DiFrisco said those
concerns appear "overblown," citing conversations with
management in which they affirmed that the rebates were planned
and factored into the company's previous forecast.
Single-serve coffee pods are expected to reach $959.1
million in retail sales this year - up 32 percent, according to
Euromonitor International. That would account for about 10
percent of the overall coffee market, which is expected to grow
by only 6 percent this year.
Green Mountain shares rose 24 cents, or 1.1 percent, to
$22.77 in midday trade on the New York Stock Exchange. Dr Pepper
shares were down 12 cents, or 0.3 percent, to $43.93.