Coffee maker Green Mountain Coffee Roasters Inc. (GMCR) has stepped into the wellness category by unveiling its new product line of Wellness Brewed beverages. It is a collection of new drinks packed with antioxidant vitamins. The Wellness Brewed beverages K-Cup packs are exclusively available online at WellnessBrewed.com, GreenMountainCoffee.com, and Keurig.com. The price starts from $17.49 per 24-count box.
Three varieties of coffee rich in antioxidants and Green Mountain Coffee Focus Blend rich in L-theanine, an amino acid found in tea were unveiled on September 6, 2012. Two more 'Vitamin Burst' drinks were offered early this summer also form a part of the Wellness Beverage line.
The new healthy beverages are available in six varieties, namely, Green Mountain Coffee Antioxidant Blend, Green Mountain Coffee Focus Blend, Celestial Seasonings Antioxidant Max Blackberry Pomegranate Green Tea, Celestial Seasonings Antioxidant Max Blood Orange Star Fruit Green Tea, Vitamin Burst Strawberry Pomegranate and Vitamin Burst Acai Berry.
While Wellness Brewed and Green Mountain Coffee are part of Green Mountain's Specialty Coffee business unit, Celestial Seasonings is a registered trademark of Celestial Seasonings, Inc., a subsidiary of The Hain Celestial Group, Inc. (HAIN)
The new endeavor by the company was well accepted by the investing community and it is evident from the fact that the share price jumped 13.2% to $27.83 on September 7, 2012; within 24 hours after the company announced its new Wellness Beverage line.
This new venture in the wellness category may help the company to boost its sales as customers are becoming more health conscious. Green Mountain followed the path of other beverage makers like Coca Cola Company (KO) and Starbucks Corporation (SBUX), whose good for health drinks were hits in the market. Coca Cola in 2010 offered vitamin rich mineral water bottles and Starbucks forayed into health drinks by acquiring juice company Evolution Fresh last year in November.
The new innovation comes at a time when the main K-Cup patents are going to end in 2012. Well-known brands and close competitors like Starbucks Corporation and Caribou Coffee Company Inc. (CBOU) will have other alternatives, which will hurt Green Mountain's fundamentals. Competition for Green Mountain's business unit Keurig is expected to increase soon with Starbucks planning to launch its own single-cup at-home coffee machine called Verismo this year.
Currently, Green Mountain holds a Zacks #3 Rank, which implies a short-term Hold rating.