Closely following the expansion of manufacture and distribution deal with Dunkin’ Brands Group Inc. DNKN and Dr Pepper Snapple Inc DPS, last month, Keurig Green Mountain Inc. GMCR entered into a multi-year manufacturing and distribution agreement with Reily Foods Company of New Orleans, LA.
Per the agreement, Keurig Green Mountain will have the exclusive right to manufacture three varieties of hot beverages — New England brand coffee, New Orleans Famous French Market brand coffee, and Luzianne brand iced tea pods — in K-Cup packs for Keurig hot brewing systems.
The new K-Cup packs will be available from fall 2015 in at-home and away-from-home channels in the United States and Canada.
Keurig Green Mountain produces coffees, teas and other hot beverages which are sold in K-Cup and Vue portion packs. These portion packs can be used on single-serve Keurig brewers for making hot beverages.
After gaining success and attaining dominance in the single-serve brewing category for making hot beverages, the specialty coffee retailer is now stepping into the cold beverage market. The new Keurig brewer — Keurig Cold Machine — which will make sodas, sports drinks and other beverages at the touch of a button, is scheduled to be launched soon. Like its coffee machines, the cold machine would also use pods for the various drinks.
Meanwhile, to increase its brand power, Keurig Green Mountain has entered into a 10-year partnership with the beverage giant The Coca Cola Company KO and Dr Pepper Snapple. Under the deal, the coffee maker will exclusively produce Coca-Cola and Dr Pepper branded pods for the Keurig Cold Machine to make cold beverages. Coca-Cola will also work with Keurig Green Mountain to develop and launch the latest version of Keurig single-cup brewer.
Through these agreements, Keurig Green Mountain, carrying a Zacks Rank #3 (Hold) is aligning with major beverage brandsto support a range of consumer choices and taste profiles under its single-cup brewing system.
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