Green Mountain offers cheaper brewer
The Keurig maker responds to new competition from Starbucks and other companies.
The company said this week it will sell a new Vue for only $209.99. The original view was priced at $249.99 and then lowered to $229.99. The cheaper brewer has a black-and-white touchscreen -- compared with the color screen on the original Vue -- and lacks a silver band accent.
The company struggled to recover after Starbucks (SBUX) said it would sell its first single-cup coffee machine this holiday. The machine, called Verismo, will be able to make espresso drinks and lattes using separate pods for coffee and milk.
And Nestle's Nespresso brand also has a nice lineup of espresso machines starting at $129. Nespresso is making a bigger push into North America.
Green Mountain is quickly developing its own espresso machine, but it's looking like that won't come out until next year.
Green Mountain has around 90% of the single-cup market, and investors are wondering how much Starbucks and other competitors will cut into that dominance.
Shares of Green Mountain fell 4% Friday to close at $23.74. That's down 77% from a year ago. Ouch. Green Mountain had a great idea and ran with it for a long time. But it was only a matter of time before the competition moved in. This stock is never going back to its former greatness.
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