Now you can get your favorite soup served from your very own Keurig brewer. Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) has signed a deal with Campbell Soup Company (NYSE:CPB) that will bring forth the unsettling mix of having your hot soup right out of the same machine that makes your coffee. With just one touch of a magical button, and Campbell’s Fresh-Brewed Soup K-Cup pack of course, you will get a warm serving of Campbell’s soup. I don’t know about others, but I just find the idea downright disturbing, I would like my soup and coffee to be separated by a brick wall.

Green Mountain And Campbell Create "Fresh-Brewed Soup"

Both companies have expressed their pleasure at signing the deal,  Denise Morrison, CEO of Campbell said in a statement,“This innovative partnership is a win for consumers and for both companies, and represents another important step as Campbell expands into higher-growth spaces.” Well, it sure is innovative, no doubt about that.

Green Mountain takes a toll on shortsellers

In response to this brand new way of snacking, Green Mountain Coffee Roasters is up 1.5% today whereas CPB is also up on the margin. Now if Green Mountain Coffee Roasters, Inc. (NASDAQ:GMCR) really gets to sell these new Keurig brewers, there is more bad news for David Einhorn. His hedge fund, Greenlight Capital, has a long standing short position in Green Mountain Coffee Roasters which has been underperforming for several quarters now. We pointed out yesterday how Einhorn’s famous short has raked in a gain of +110% for this year already, making it one of the worst performing shorts of the year.

David Einhorn critical of Green Mountain’s improving margins

Einhorn has been broadly critical of Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR)’s prospects for growth. In his quarterly investor letter, he said that Green Mountain Coffee Roasters has been able to improve margins based on temporay factors like, lower raw coffee costs, less coffee spoilage and reduction in its warranty reserve for defective coffee makers. It is unlikely that these fundamentals will sustain. Green Mountain Coffee Roasters showed decreased sales of brewers in the last quarter, the first such reduction. The company also suffers from increasing competition as other makers of K-cups are invading the market ever since the patent expired in Sep 2012.

Short interest in Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) has dropped from 23% of outstanding shares at the end of first quarter to 20.85% on August 15.