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Check out my full article, published on Seeking Alpha here.

Starbucks (SBUX) recently entered the single-serve coffee market by launching the Verismo System in stores for the 2012 holiday season. Verismo’s launch borders on being too little too late to enter the single-cup market, and is not positioned well to be a strong competitor against single-serve machines such as Keurig, Tassimo, or Nespresso. Sales are neutral to Starbucks’ outlook, and the machine is more so an outlet for the company to save a portion of their sales disappearing from consumers desiring a home brew, rather than to gain market share from other single-cup brewing machines. However, the core business of selling the Starbucks culture remains strong with the increased penetration of the Gold Card loyalty program and continual launch of fresh product ideas.

Check out my full article, published on Seeking Alpha here.

http://seekingalpha.com/article/1099981-slow-verismo-sales-are-no-indicator-of-starbucks-outlook

starbucks-verismo

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