In an attempt to popularize the single-cup brewing system in the U.S., Keurig Green Mountain Inc. GMCR has been signing strategic distribution agreements with well-known coffee brands to distribute their coffee in its portion packs.
Closely following the expansion of manufacture and distribution deal with Dunkin’ Brands Group Inc. DNKN and Dr Pepper Snapple DPS, Keurig Green Mountain entered into a multi-year partnership with DS Services of America, Inc., a subsidiary of Cott Corporation. Per the agreement, the company has the exclusive right to manufacture two varieties of DS Services’ Javarama coffee — Javarama Signature Medium Roast and Dark Roast — in K-Cup packs for Keurig brewers. The DS Services K-Cup packs will be available in Mar 2015 in at-home and away-from-home channels.
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.
To maintain its dominance in the single-serve brewing category, specialty coffee retailer is also stepping into the cold beverage market. The new Keurig brewer — The 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, in order 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 to be used on the Keurig Cold Machine for making 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, the company is aligning with major beverage brands to support a range of consumer choices and taste profiles under its single-cup brewing system.
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