Keurig Green Mountain (US)
North American coffee roaster Green Mountain emerged as one of the most dynamic forces in the local drinks market in the late 2000s as a result of the extraordinary success of its Keurig single serve home coffee systems. Spectacular growth since 2008 established it as the world's 4th largest coffee company by 2013. In its main market of North America, Keurig's single-serve capsules now comprise the biggest individual coffee brand, with local retail share that is almost as much as traditional leaders Folgers and Maxwell House combined. The company has cemented its position with a series of key alliances with other roasters. In addition to its own Green Mountain blends it also hosts co-branded capsules for all its main tea and coffee rivals including Starbucks, Folgers, Dunkin Donuts, Lavazza, Lipton and Twinings. However a move into soft drinks with the Keurig Kold system backed by Coca-Cola proved unsuccessful. The first machines launched in 4Q 2015, but consumer response was poor. A few months later, the company agreed to be acquired by JAB Holdings, the controlling shareholders in Jacobs Douwe Egberts. Former Mars executive Bob Gamgort succeeded Brian Kelley as CEO in 2016. Soon afterwards, Keurig Kold was scrapped. Revenues rose by more than 500% between 2009 and 2014, but slipped back to $4.5bn in the year ending 2015. Pod sales accounted for 80% of revenues. Founder Bob Stiller bought a small cafe in Vermont in 1981, and expanded its coffee roasting operations to supply corporate customers. Green Mountain Coffee Roasters went public in 1993, and acquired coffee machine maker Keurig in 2006. Stiller stepped down as CEO in 2007 and retired from the business altogether in 2012. Adbrands doesn't profile this company but subscribers may access account assignments and contact information. The searchable account assignments database is available to full subscribers to Adbrands.net premium services.
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Who are the competitors of Keurig Green Mountain? See Non Alcoholic Beverages Sector for other companies
Capsule checked 17th May 2016
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Adbrands Weekly Update 16th Nov 2017: Polarisation between supporters of America's political left and right over Fox News coverage continues to increase. It's hard to see (and worrying to imagine) where this escalation will end. Left-wing group Media Matters called for an advertiser boycott of lead anchor Sean Hannity's top-rated primetime show after he appeared to go easy on Alabama Senate candidate Roy Moore, who has been accused of past inappropriate contact with underage girls. Several advertisers, including E-Trade and Keurig, withdrew spots from the show, prompting a return boycott from Hannity's fans. Some posted videos of themselves smashing their Keurig coffeemakers; the backlash was so intense that Keurig CEO Bob Gamgort was forced to issue a statement apologising for "taking sides" over the issue.
Adbrands Weekly Update 12th Jan 2017: Apparently undeterred by the failure of the Keurig Kold soft drinks dispenser, AB InBev is teaming up with Keurig - now owned by German-Austrian investment giant JAB Holdings - to develop a home drinks system for alcoholic beverages. The two groups already have close links. One of JAB's three managing partners, Olivier Goudet, is also chairman of AB InBev.
Adbrands Weekly Update 9th Jun 2016: Keurig Green Mountain, now a subsidiary of JAB Holdings, pulled the plug on its Keurig Kold soda dispenser which launched last year to universally negative reviews and weak consumer demand. Too slow, too big and too expensive, was the general reaction. Keurig said it will refund (the not very many) customers who bought the machine at a pricey $370, and will focus instead on its core market: its Keurig home coffee maker machines, which are as ubiquitous in the US as Nespresso is in Europe.
Adbrands Weekly Update 10th Dec 2015: Keurig Green Mountain, makers of the Keurig coffee system which dominates the US single-serve market, is to join the fast-expanding portfolio of family-controlled investment group JAB Holdings. That group already has extensive interests in the coffee market, including global leader Jacobs Douwe Egberts and US roaster and retailers Peet's and Caribou. Other interests include a major holding in beauty giant Coty and private ownership of luxury group Labelux. After rapid growth over the past few years, Keurig's performance has slumped dramatically since the end of 2014. Its latest generation of coffee machines initially flopped because they weren't compatible with existing K-Cups pods, and response to the company's new Keurig Kold drinks dispensers has been lukewarm at best, despite its exclusive tie-up with Coca-Cola, also a minority shareholder. JAB and its supporting investors will acquire Keurig for $13.9bn. Coca-Cola has endorsed the buyout and will remain a shareholder.
Adbrands Weekly Update 28th May 2015: Keurig Green Mountain gave investment analysts a sneak preview of its Keurig Kold soft drinks machine, a joint venture with Coca-Cola. The feedback was not good. The machine will allow customers to make cold drinks including Coca-Cola at home, using similar sorts of capsules to its hot drinks dispenser. However, investors were horrified by the proposed pricing of the machine starting at $300 for the most basic model. That's three times or more the price of rival Sodastream, whose own sales have already effectively stalled in the US. Another black mark was a delay in launch. The Kold machines had been expected this summer. Now, although some machines will be available online at the end of this year, the majority won't go on-sale until 2016. The latest news arrived in the wake of weak 2Q results for Keurig, marred by negative consumer responses to the company's most recent hot drinks machine, which prohibits the use of refillable third-party capsules.
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