Keurig Shares Soar After Kraft Announcement
Keurig Green Mountain, Inc. and Kraft Foods Group, Inc. announced a multi-year licensing, manufacturing and distribution agreement for Kraft's branded coffees in Keurig portion pack formats compatible with Keurig consumer and commercial brewing systems in the United States. Financial terms of the agreement were not disclosed, but the anouncement propelled Keurig Green Mountain Inc.'s shares to hit a 52-week high of $133.36 on August 22, 2014.
The deal is the latest in a string of moves by Keurig, which previously partnered with Coca-Cola to allow people to make various Coke beverages at home. Keurig also announced an agreement to distribute packaged McDonald’s coffee to retailers, thus allowing consumers to make McCaf drinks at home with their Keurig machines, according to this report from Packaged Facts.
“The company is successful at leveraging licensed partnerships with brands and retailers to increase awareness of its proprietary brewing system,” says Packaged Facts Research Director David Sprinkle. “This latest partnership with Kraft only further underscores the brand’s ability to both pair itself with major coffee players, and underscores how much American coffee drinkers appreciate the ability to replicate their favorite chain restaurant or coffeehouse products at home.”
With this new agreement, consumers in the U.S. can enjoy their favorite Kraft coffee brands, Maxwell House, Gevalia and Yuban, along with McCaf, in a variety of licensed Keurig portion pack formats for both the at-home and away-from-home channels.
"We hear time and time again that consumers consistently choose the Keurig brewing system for the quality, simplicity, value, and, most importantly, the variety of brands and beverages available in the system," said Brian Kelley, Keurig's President and CEO. "Adding Kraft's celebrated brands to the licensed Keurig family means Keurig consumers will be able to enjoy even more beverages they know and love with the quality and consistency they expect from their Keurig brewer."
"At Kraft, we have made significant strides in rejuvenating our coffee business across all segments — including mainstream, premium and on-demand — by focusing on driving profitable growth for our brands and our customers," added Dino Bianco, Kraft's Executive Vice President and President, Beverages. "This agreement offers the opportunity for expanded distribution across multiple channels, and is another example of our focus on long-term growth in action."
Keurig-licensed Kraft-branded portion packs will begin to launch in Fall 2014. Initially, both Kraft and Keurig will handle manufacturing for single-serving pods. Following a planned transition period, Keurig will become the exclusive manufacturer of Kraft-branded Keurig packs using coffee sourced, roasted, and blended by Kraft.
The deal is the latest in a string of moves by Keurig, which previously partnered with Coca-Cola to allow people to make various Coke beverages at home. Keurig also announced an agreement to distribute packaged McDonald’s coffee to retailers, thus allowing consumers to make McCaf drinks at home with their Keurig machines, according to this report from Packaged Facts.
“The company is successful at leveraging licensed partnerships with brands and retailers to increase awareness of its proprietary brewing system,” says Packaged Facts Research Director David Sprinkle. “This latest partnership with Kraft only further underscores the brand’s ability to both pair itself with major coffee players, and underscores how much American coffee drinkers appreciate the ability to replicate their favorite chain restaurant or coffeehouse products at home.”
With this new agreement, consumers in the U.S. can enjoy their favorite Kraft coffee brands, Maxwell House, Gevalia and Yuban, along with McCaf, in a variety of licensed Keurig portion pack formats for both the at-home and away-from-home channels.
"We hear time and time again that consumers consistently choose the Keurig brewing system for the quality, simplicity, value, and, most importantly, the variety of brands and beverages available in the system," said Brian Kelley, Keurig's President and CEO. "Adding Kraft's celebrated brands to the licensed Keurig family means Keurig consumers will be able to enjoy even more beverages they know and love with the quality and consistency they expect from their Keurig brewer."
"At Kraft, we have made significant strides in rejuvenating our coffee business across all segments — including mainstream, premium and on-demand — by focusing on driving profitable growth for our brands and our customers," added Dino Bianco, Kraft's Executive Vice President and President, Beverages. "This agreement offers the opportunity for expanded distribution across multiple channels, and is another example of our focus on long-term growth in action."
Keurig-licensed Kraft-branded portion packs will begin to launch in Fall 2014. Initially, both Kraft and Keurig will handle manufacturing for single-serving pods. Following a planned transition period, Keurig will become the exclusive manufacturer of Kraft-branded Keurig packs using coffee sourced, roasted, and blended by Kraft.