Photo: Flickr/Thomas Abbs
Shares of Green Mountain Coffee Roasters are down close to 2% on concerns over a new single-brewing coffee product Starbucks will be rolling out soon that could hurt the company’s edge in this market.Starbucks shares are up just slightly today at $33.35.
Green Mountain was surging earlier in the month after a better-than-expected earnings report and buzz around its new Keurig brewing technology.
There were talks of a partnership between the two coffee companies in the single-brewing sector but those rumours are dying down as a result of Starbucks’ new product.
However, Canaccord Genuity analyst Steve Van Winkle still thinks the partnership will be happening. He wrote in a research note this morning that “Our belief has been, and continues to be, that Starbucks coffee will be available for Keurig brewers later this year. A deal is inevitable, in our opinion, and the timing may be soon given these articles,” wrote Van Winkle.
Starbucks announced this weekend that it was open to partnerships with other firms.
Green Mountain Coffee is one of the most shorted stocks on the market with a short float of 26.2%.