Keurig's financial nerve had a big itch last year and the investors had gone wild when the company's stock continuously fumbled since the start of 2015 until JAB Holdings saved the company with a deal that privately took the company by $92 per share.
What happened before the free-fall and buy-out occured? The biggest earning product from the company was its K-Cups and K-Cup sales had flattened. The plummeting (down by 23%) brewer sales meant a bleak outlook for the company and its investors. Fears stemmed from buyers shifting to a different variety of coffee serves. Consumers are opting for brewing cups which are much more affordable on a per-cup analysis.
The stock closed 2015 with $89.98 which was a 32% drop from the beginning of the year.
If JAB Holdings weren't there to save the day, then Keurig would have been in big trouble. JAB Holdings bought out the company even though Keurig shows underwhelming stock value. The buy-out shows that JAB Holdings is still confident with the stable company regardless of the rise and fall of its stock values.
When Keurig becomes a private company then it could be the best life line for the business. Shareholders will then be able to recover values lost.
JAB Holdings is a private group of investors. They have amassed investments with premium brands in the consumer goods category. They also focus on luxury goods and coffee sectors which is one reason why it's interested with Keurig. Keurig in the future would be able to focus on putting more value to the business in partnership with JAB's other coffee brands, reports have indicated.
Keurig is a single-serve brewer and coffee-pod manufacturing company which produces a beverage brewing system for home and commercial use. Owned by Keurig Green Mountain in Waterbury, Vermont, the company's main products are single-serve coffee containers, beverage pods, and proprietary brewers. The company has over 400 different brand varieties.
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