Green Mountain Coffee Roasters Inc. (GMCR)’s Keurig 2.0 Irks TreeHouse

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Green Mountain Coffee Roasters Inc. (GMCR)’s Keurig 2.0 Irks TreeHouse
By Keurig Green Mountain, Inc. [Public domain], via Wikimedia Commons

Green Mountain Coffee Roasters Inc.’s (GMCR) attempt to maintain dominance in the single-serve coffee sector has landed the company in trouble. Share price plummeted after TreeHouse Foods Inc. (THS) charged the Vermont-based brewer of attempting to lock out competition in the single-serve brewing business with its new Keurig 2.0 brewing system.

After the expiry of the K-cup patents in Sep 2012, competition intensified for Green Mountain.The patent-protected technology involves simple technology to brew a cup of coffee using a precise amount of coffee in each pod. Therefore, the technology is very easy to copy.

To counter the situation, Green Mountain came up with the latest Keurig 2.0 brewing machine with an interactive readability technology that will work only with licensed pods.

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