Green Mountain Coffee Roasters Inc. (NASDAQ: GMCR) hit a new two-year low earlier this morning but Starbucks Corporation (NASDAQ: SBUX) may be coming to the rescue. The hope is that Green Mountain’s K-Cups will be sold at the Starbucks stores. What generated the buzz was an announcement that Starbucks will be releasing a plan to further strengthen is core retail businesses in the United States.
A ‘further strengthening’ implies simply more of one effort rather than a change in direction. Still, we would warn that anything is possible. CEO & Chairman Howard Schultz will be hosting a conference call with two other executives. We would note that Starbucks announced earlier in 2012 that it was creating its own single-serving espresso product and Green Mountain’s Keurig system lost some of that magic that it had when the deal was formally announced.
To show how much the boost is, Green Mountain Coffee shares are up 3.5% at $23.21 after hitting a low of $21.77 earlier this morning. Starbucks is also up almost 3% at $53.66.