Thursday, September 20, 2012

Now you can brew your own Starbucks Corporation (NASDAQ:SBUX) Latte – GMCR, PEET

Home-made Starbucks Corporation (NASDAQ:SBUX)’s coffees? Well, that is what the ubiquitous coffee chain is offering customers - a single-serve coffee maker where you can brew your own coffees, the way you want it with real milk.

The Seattle-based company has been exploring new lines of business and this is one outcome of that.

The machine is called the Verismo and is equipped with a `milk pod' that has been developed by the company. 

“Our research and development team cracked the code on being able to create a latte using real milk with a proprietary piece of technology,” said Howard Schultz, the chief executive of Starbucks.

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“There’s no other single-cup machine that makes a latte with fresh milk just like we make it in our stores.”

The single-serve coffee machines will be sold in Starbucks stores and at verismo.com later this month and will be available in two models, one for $199 and another for $399.

This initiative by the company is part of its plan to capitalise on the huge brand equity that the company possesses among all sections of coffee consumers and in most parts of the developed world.

Single-cup coffee machines have become popular, especially those that use K-cups. According to a senior executive of the company more than $8 billion worth of the machines were sold across the globe last year and more households seemed to prefer this machine to others.

In the U.S. alone sales of these types of machines have more than doubled.

Shares of SBUX fell 0.32% to $49.95 in the pre-open session. Green Mountain Coffee Roasters Inc.(NASDAQ:GMCR) slid 4% and Peet's Coffee & Tea, Inc.(NASDAQ:PEET) is down 0.50%.

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