Shares of Green Mountain Coffee Roasters Inc. plummeted on news thatStarbucks Corp.intends to sell a single-cup coffee machine of its own.
Green Mountain dominates the single-serve market with its popular Keurig, or K-Cup, machines. Its shares were down more than 15% Friday on news that Starbucks plans to sell single-cup Verismo machines this fall. Starbucks shares were up more than 2% Friday.
Starbucks has not yet released pricing for the Verismo, but SunTrust Robinson analyst William Chappell wrote in a note to clients on Thursday that he expects the Starbucks machine to start “around the $250-$300 range,” about twice that of Green Mountain’s Keurig machines.
Starbucks first entered the single-serve coffee market with its Via Ready Brew instant coffee in 2009, and it launched its K-cup packs for Keurig single-cup machines in November.