Keurig Green Mountain Inc. (GMCR) has entered into an agreement with U.S.’s famous restaurant chain, Subway, to widen the homemade single-serve coffee options for Keurig users. Under the agreement, Keurig Green Mountain’s new K150 brewer series will be installed at the Subway restaurants across the U.S.
Notably, the Keurig K150 Series Commercial Brewing System was certified by the National Sanitation Foundation (NSF) for foodservice use.
The certification ensures that the brewing system meets public health and safety standards intended for commercial foodservice. Products bearing the certification are respected and trusted by consumers, retailers and regulatory authorities alike.
The new agreement is beneficial for Subway as it will boost its hot beverage line-up. Moreover, the convenience of Keurig brewers will enhance the popularity of its beverage among Keurig fans. For Keurig Green Mountain, the deal furthers its goal of sustaining its dominance in the single-serve brewing market even after the expiry of its K-cup patents in Sep 2012.
GreenMountainproduces coffees, teas and other hot beverages which are sold in K-Cup and Vue portion packs. These packs are especially made for its single-serve Keurig brewers for making hot beverages.
Keurig Green Mountain Coffee aims to popularize the single-cup brewing system in America and has entered into several strategic distribution agreements to incorporate popular brands like Dunkin’ Brands Group Inc. (DNKN) and Starbucks Corp. (SBUX) into its portion pack system.
Moreover, to maintain its dominance in the single-serve brewing category, Keurig Green Mountain which currently carries a Zacks Rank #3 (Hold) is foraying into the cold beverage and soda market. It will launch its new Keurig brewer — The Keurig Cold Machine — which will make sodas, sports drinks and other beverages using pods at the touch of a button.
In order to increase its brand power, the company has inked a 10-year partnership deal with beverage giant The Coca Cola Company (KO). Per the deal, Green Mountain will exclusively make Coca-Cola branded pods to be used on its upcoming Keurig Cold Machine for making cold beverages. Coca-Cola will also work with Green Mountain to develop and launch the latest version of Keurig single-cup brewer.
Through these agreements, Green Mountain is aligning with the strongest beverage brands to support a range of consumer choices and taste profiles in Keurig Single-Cup Brewing system.
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