Mondelez International Inc (MDLZ), Green Mountain Coffee Roasters Inc. (GMCR): Where to Invest in the Single-Serve Market

The embattled K-Cupwar

Although Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) is barely making a dent on the worldwide coffee market, it should take note when it comes to beverage infringements. Keurig, the company’s flagship single-serve coffee maker, has been the poster child of patent infringements. With recent courtroom battles over the K-Cup and single-serve beverage brewer containers, it has rapidly developed partnerships with companies for the  Keurig brewing system while reapplying for patents associated with the product. Along with the product launch of the Vue, the company hopes to retain ownership of the beverages brewed inside the machines while launching partnership brands to drive machine sales.

Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) has continued to grow momentum in the single-serve market with its rapid Keurig expansion. With category growth of 50% from 2009 to 2012 and the Keurig system being one of the top four best-selling coffeemakers by dollar volume on the market, revenue from machines alone surpassed $759.8 million dollars. However, revenue from the company’s K-Cups was the majority of top line revenue with $3.86 billion for the year of 2012. Will this coffee brewer be able to keep up with rapid expansion? Only time will tell as more K-Cups hit the market.

The bottom line

Wise investors should take heed of the single-serve beverage market which is currently at $8 billion and growing. Mondelez International Inc (NASDAQ:MDLZ) leads the market with an already-popular brewing system, and the company plans to develop new pod products along with continued Tassimo expansion. Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) plans to partner with other beverage companies to expand its beverage selections, while Nestlé is tapping into the gourmet coffee market with their elite machines. With these three companies paving the way in the single-serve beverage space, there is only room to grow as coffee drinkers drive market innovation.

The article Where to Invest in the Single-Serve Market originally appeared on Fool.com.

Kaitlyn Tokay has no position in any stocks mentioned. The Motley Fool recommends Green Mountain Coffee Roasters. Kaitlyn is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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