Green Mountain Coffee Roasters Inc unveiled details of the long-awaited single-cup espresso machine it will launch with Italy's Luigi Lavazza SpA, marking its entry into the espresso, cappuccino and latte brewer category.
The machine, to be called Keurig Rivo Cappuccino and Latte System, will have a suggested retail price of $229.99 and will be available exclusively at select Bloomingdales stores, starting in mid-November.
Green Mountain's machine will compete with Verismo coffee and espresso makers launched by Starbucks Corp in October.
Green Mountain, owner of the Keurig one-cup brewing system and the K-Cups that go with it, has been facing increased competition of late.
In September, certain patents governing K-Cups' design expired, leading to the emergence of a host of lower-cost competitors, including private label brands that are producing Keurig-compatible cups without a licensing agreement with Green Mountain.
Shares of Green Mountain closed at $24.74 on the Nasdaq on Wednesday.
(Corrects paragraph 2 to say the suggested retail price of the espresso machine to $229.99, not $299.99)
(Reporting By Siddharth Cavale in Bangalore and Martinne Geller in New York; Editing by Sreejiraj Eluvangal)