Keurig Green Mountain Inc. was riding an incredible high not too many months ago. Investors had high expectations for what their new product might do for the falling shares, which have been in a 29 percent free fall this calendar year. The new product was something that investors hoped would regain some of the excitement that people had about the brand just a year ago. However, it would appear as though that saving grace is going to be, at the very least, delayed through its launch.
Keurig Green Mountain Inc. was planning on launching the Keurig Kold machine this year. However, it would appear as though after investors were disappointed by what Keurig was calling a slow roll out that Keurig Kold will not be everywhere until late-2016. Specifically, the company pointed to a holiday season 2016 full-release for Keurig Kold, which leaves it a little more than a year delayed from what the company had originally planned this fall.
After repeated successes, it would appear as though Keurig Green Mountain Inc. is hitting a wall. The company is struggling to get their customers and investors excited about their products – while the company continues to try and recover some of the massive numbers they’ve lost on Wall Street. At this point, the Keurig Kold seems like the company’s best opportunity to gain some of those losses back.
The slow release though of the Keurig Kold was just the latest example of the company under performing against investor expectations. It was just last week that the company reported quarterly profits that fell dramatically below investor forecasts. They came up 1.9% short, which was a significant blow to Keurig’s confidence, as they tried to regain some of what they were clearly losing throughout this week.
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Investors have a significantly darker outlook on how the company will perform the rest of the year. Gone are the expectations that Keurig Green Mountain Inc. is the safe stock, or safe company to be investing with that it was at one time. Now, all that is left are expectations that have gone awry, and investors that are asking themselves “why,” instead of talking about the next great product that the company will release.
It’s unclear at this point how Keurig will respond to the failing figures and cold outlook from investors. However, it’s pretty clear that things are likely to get worse for shareholders of Keurig Green Mountain Inc. before they get better. It’s a tough situation, but right now, the Keurig Kold seems to be the company’s only hope. The chilled beverage machine that would compete with the likes of the SodaStream is something that the company didn’t want to have to replace inside its own operation. However, until the company knows how soon it can get the Keurig Kold out, and if they can get it out ahead of schedule – everyone is playing a game of “wait and see.”
