Is Green Mountain Coffee Roasters Set to Grow in 2013?
New data compiled by The NPD Group revealed a trend in coffee drinking habits that bodes well for Green Mountain Coffee Roasters (NASDAQ:GMCR). Based upon coffee drinking habits in the United Kingdom, the firm released a chart that showed a distinct difference between the growth rates of the traditional coffee sector and the specialty coffee sector.
Since 2008, traditional coffee, also known as “drip” coffee, has lost close to half its share of the food service purchases market, while the market share of specialty coffee has grown to 12 percent. This trend indicates that Green Mountain, with its Keurig single-cup brewing system no longer under patent, has room to grow despite increasing competition from Kraft Foods’ (NASDAQ:KRFT) brewing system and Starbucks’ (NASDAQ:SBUX) Verismo.
While the data is limited in scope, the trend is an important one because, as a group, the British drink coffee at restaurants more often than the French or Americans; for the past five years, coffee has consistently accounted for 15 percent to 20 percent of all purchases of prepared meals, snacks, and drinks in the United Kingdom…