Starbucks Corporation (SBUX), Green Mountain Coffee Roasters Inc. (GMCR), & More: Coffee Gets a Hot Dose of New Competition

So far, JAB has said that it’s not planning to combine the operations of its three new brands. Instead it plans to keep the American coffee shop companies doing their thing, and the European production arm doing its thing. But Master Blenders does have the ability to make pods to go up against Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) and others, and if it wanted to, the company could use that capability to make a move in the American market.

It could also move against Starbucks Corporation (SBUX), by using its European production capabilities to bring new lines to the U.S., or by using its U.S. cafe brands to bring new competition to Starbucks Corporation (SBUX) in Europe. No matter what JAB does, it’s almost certainly going to present new challenges for U.S. coffee brands in the future. Investors should watch for any new business lines from JAB and keep an eye out for more acquisitions in the near future.

The article Coffee Gets a Hot Dose of New Competition originally appeared on Fool.com and is written by Andrew Marder.

Fool contributor Andrew Marder has no position in any stocks mentioned. The Motley Fool recommends Burger King Worldwide, Green Mountain Coffee Roasters, and Starbucks and owns shares of Starbucks.

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