Soup, There It Is!
Shares of Green Mountain Coffee Roasters are down today on the news that it's partnering with Campbell's Soup to create single-serve soup packs you can make with your Keurig. According to Motley Fool Analyst Ron Gross, while the idea is a good one, it's probably not a game changer for either company. Green Mountain's still going to focus on its core coffee market, and Campbell's is going to continue selling regular old soup. But which company most needs this experiment to work?
Ron thinks that Green Mountain is in a stronger position than Campbell's, and shares of the company are up over 95% year to date. Meanwhile, due to some financial finagling, Campbell's earnings are down dramatically from last year, which is why Ron thinks Campbell's needs this experiment to work. Meanwhile, Ron thinks that Green Mountain shareholders shouldn't buy into the news, nor should they panic. He thinks that the best course of action is to stay calm and wait to see how the soup packets are received by consumers when they debut in 2014.
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The article Soup, There It Is! originally appeared on Fool.com.Fool contributor Mark Reeth has no position in any stocks mentioned. Ron Gross has no position in any stocks mentioned. The Motley Fool recommends Green Mountain Coffee Roasters. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.