Keurig Green Mountain Inc. (GMCR) and private family owned and operated coffee retailer Community Coffee Company have entered into an agreement to widen the homemade single-serve coffee options for Keurig users. Under the multi-year agreement, Community Coffee Company will manufacture and distribute its coffee in K-Cup portion packs that can be used on Keurig brewers.
The Community Coffee K-Cup packs are scheduled for a spring 2015 launch in at-home and away-from-home channels. The K-Cup packs will also be available in K-Karafe packs and Bolt packs for the newly launched Keurig 2.0 brewing system and Keurig BOLT Carafe Brewing System, respectively.
Keurig produces coffees, teas and other hot beverages which are sold in K-Cup and Vue portion packs. These portion packs can be used on its single-serve Keurig brewers for making hot beverages.
The deal will boost Community Coffee sales as the convenience of Keurig brewers will enhance the popularity of its beverage among Keurig fans. Moreover, the deal furthers Keurig’s goal of sustaining its dominance in the single-serve brewing market after the expiry of its K-cup patents in Sep 2012.
Keurig Green Mountain aims to popularize the single-cup brewing system in America and, in this regard, has signed several strategic distribution agreements to rope in popular brands like Dunkin’ Brands Group Inc. (DNKN) and Starbucks Corp. (SBUX) into its portion pack systems.
Moreover, to maintain its dominance in the single-serve brewing category, Keurig is stepping into the world of cold beverage and soda. It will launch its new Keurig brewer — The Keurig Cold Machine — which will make sodas, sports drinks and other beverages at the touch of a button. Like its coffee machines, the cold machine would use pods for the various drinks.
In order to increase its brand power, Keurig has inked a 10-year partnership deal with the beverage giant – The Coca Cola Company (KO). Under the deal, the coffee maker will exclusively produce Coca-Cola branded pods to be used on the Keurig Cold Machine for making cold beverages. Coca-Cola will also work with Keurig to develop and launch this latest version of Keurig single-cup brewer.
Through these agreements, Keurig carrying a Zacks Rank #2 (Buy) is aligning with major beverage brands to support a range of consumer choices and taste profiles in Keurig Single-Cup Brewing system.
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