Keurig () is a beverage brewing system for home and commercial use. The North American company Keurig Dr Pepper manufactures the machines. The main Keurig products are K-Cup pods, which are single-serve coffee containers; other beverage pods; and the proprietary machines that use these pods to make beverages.
Keurig beverage varieties include hot and cold coffees, teas, cocoas, dairy-based beverages, lemonades, cider, and fruit-based drinks. Keurig has over 400 varieties and over 60 brands of coffee and other beverages through its own and partnership-licensed brands. In addition to K-Cup pods, it includes Vue, K-Carafe, and K-Mug pods.
The original single-serve brewer and coffee-pod manufacturing company, Keurig, Inc., was founded in Massachusetts in 1992. It launched its first brewers and K-Cup pods in 1998, targeting the office market. As the single-cup brewing system gained popularity, brewers for home use were added in 2004. In 2006, the publicly traded Vermont-based specialty coffee company Green Mountain Coffee Roasters acquired Keurig, sparking rapid growth for both companies. In 2012, Keurig's main patent on its K-Cup pods expired, leading to new product launches, including brewer models that only accept pods from Keurig brands.
From 2006 to 2014, Keurig, Inc. was a wholly owned subsidiary of Green Mountain Coffee Roasters. When Green Mountain Coffee Roasters changed its name to Keurig Green Mountain in March 2014, Keurig ceased to be a separate business unit and subsidiary and instead became Keurig Green Mountain's main brand.Associated Press. "New Green Mountain name shows Keurig connection". USA Today. March 10, 2014. FISCAL 2014 ANNUAL REPORT . Keurig Green Mountain. November 2014. "Green Mountain Coffee Roasters changes name to Keurig Green Mountain Inc" . Vermont Business Magazine. March 10, 2014. In 2016, Keurig Green Mountain was acquired by an investor group led by private equity firm JAB Holding Company for nearly $14 billion. "JAB Holding Company-Led Investor Group Completes Acquisition of Keurig Green Mountain, Inc.". Business Wire. March 3, 2016.Masunaga, Samantha. "Owner of Peet's to buy coffee pod pioneer Keurig for almost $14 billion". Los Angeles Times. December 7, 2015. "JAB completes acquisition of Keurig Green Mountain" . Vermont Business Magazine. March 3, 2016. In July 2018, Keurig Green Mountain merged with Dr Pepper Snapple Group in a deal worth $18.7 billion, creating Keurig Dr Pepper, a publicly traded conglomerate which is the third largest beverage company in North America.
The prototype brewing machines were also a work in progress and unreliable, and the company needed funds for development. That year, they approached what was then Green Mountain Coffee Roasters, and the specialty coffee company first invested in Keurig at that time. Green Mountain Coffee – History. BrewaBetterDay.com. Archived February 22, 2015.Luna, Taryn. "Green Mountain booming with Coca-Cola partnership for new cold drink system". The Boston Globe. February 7, 2014. Keurig needed sizeable venture capital; and after pitching to numerous potential investors, the partners finally obtained $50,000 from Minneapolis-based investor Food Fund in 1994, and later the Cambridge-based fund MDT Advisers contributed $1,000,000. In 1995, Larry Kernan, a principal at MDT Advisers, became Chairman of Keurig, a position he retained through 2002. Larry Kernan at LinkedIn. Sylvan did not work well with the new investors, and in 1997, he was forced out, selling his stake in the company for $50,000. Dragone left a few months later but decided to retain his stake.
Keurig is credited with Category design with their cup-at-a-time pod-style brewing, a breakthrough product and a breakthrough business model.
In 2002, Keurig sold 10,000 commercial brewers. Consumer demand for a home-use brewer version increased,Lerner, Jill. "Keurig has some ideas brewing about consumer market". Boston Business Journal. June 9, 2003. but manufacturing a model small enough to fit on a kitchen counter and making them inexpensively enough to be affordable to consumers, took time. Office models were profitable because the profits came from the high-margin K-Cups, and one office might go through up to hundreds of those a day.Leder, Michelle. "Taking a Niche Player Big-Time". Inc. January 1, 2004.
By 2004, Keurig had a prototype ready for home use, but so did large corporate competitors like Salton, Sara Lee, and Procter & Gamble, which introduced their single-serve brewers and pods. Keurig capitalized on the increased awareness of the concept and sent representatives into stores to do live demonstrations of its B100 home brewer and give out free samples. Keurig and K-Cups quickly became the dominant brand of home brewers and single-serve pods.
The joining of Keurig and Green Mountain combined a highly technological brewing-machine manufacturer and a nationwide high-end coffee provider into one company and created an effective "razor/razorblade" model that allowed for explosive growth and high profits. By 2008, K-Cup pods became available for sale in supermarkets across the U.S. Coffee pod machine sales overall multiplied more than six-fold over the six years from 2008 to 2014.Ferdman, Roberto A. "The world’s growing love affair with the most wasteful form of coffee there is". Quartz. March 31, 2014. In 2010, Keurig and K-Cup sales topped $1.2billion. The high-margin profits from K-Cup pods are the bulk of the company's income; for the fiscal year 2014, Keurig generated $822.3 million in sales from brewers and accessories, while the pods had $3.6 billion in sales.Kell, John. "Keurig's too-hot coffee machines stung by recall". Fortune. December 23, 2014.
In February 2011, Green Mountain announced an agreement with Dunkin' Donuts to make Dunkin’ Donuts coffee available in single-serve K-Cup pods for use with Keurig Single-Cup Brewers. In addition, participating Dunkin’ Donuts restaurants occasionally offer Keurig Single-Cup Brewers for sale. "Green Mountain Coffee Roasters, Inc. and Dunkin' Donuts to Make America's Favorite Coffee Available in K-Cup Portion Packs for Keurig Single-Cup Brewers". Business Wire. February 22, 2011. In March 2011, Green Mountain Coffee and Starbucks announced a similar deal whereby Starbucks would sell its coffee and tea in Keurig single-serve pods and would, in return sell Keurig machines in their stores as part of the deal.Allison, Melissa. "Starbucks, Green Mountain ink deal, but it's not an acquisition". The Seattle Times. March 10, 2010.
In November 2012, GMCR released its espresso, cappuccino, and latte brewer, the Rivo, co-developed with the Italian coffee company Lavazza;Geller, Martinne. "Green Mountain unveils Keurig Rivo cappuccino maker". Reuters. November 8, 2012. it was discontinued in December 2016.Quirk, Mary Beth. "Owners Of Discontinued Keurig Rivo Having Trouble Buying Coffee Pods That Will Work". Consumerist. February 28, 2017. In the fall of 2013, the company released a full-pot brewer, the Keurig Bolt, mainly used in offices;Gasparro, Annie. "Green Mountain Coffee Unveils Full-Pot Keurig". The Wall Street Journal. July 11, 2013. it was discontinued in December 2016.
In November 2013, Keurig opened a retail store inside the Burlington Mall in Burlington, Massachusetts. The store features the full line of Keurig machines and accessories and nearly 200 varieties of K-Cups for creating individualized 3-, 6-, or 12-pod boxes.Luna, Taryn. "Burlington Mall hosts Keurig’s first-ever retail outlet". The Boston Globe. November 9, 2013. Burlington Mall – Keurig. Simon.com. Retrieved May 4, 2015.
In February 2014, The Coca-Cola Company purchased a 10% stake in Green Mountain Coffee Roasters, valued at $1.25 billion, with an option to increase their stake to 16%, which was exercised in May 2014.Stafford, Leon. "Coca-Cola ups stake in Keurig". The Atlanta Journal-Constitution. May 13, 2014. The partnership was part of Coca-Cola's support of a cold beverage system developed by Keurig to allow customers to make Coca-Cola and other brand beverages at home. In January 2015, the company made a similar deal with Dr Pepper Snapple Group, but without a stockholder stake.Gasparro, Annie; Esterl, Mike. "Keurig Reels In Dr Pepper for Its Coming Soda Machine". The Wall Street Journal. January 7, 2015. The cold beverage system Keurig Kold, launched in September 2015. "Keurig Green Mountain Announces the Launch of Keurig KOLD" (press release). Investor.KeurigGreenMountain.com. September 29, 2015.
In the fall of 2014, Keurig Green Mountain introduced the Keurig 2.0 brewer, with technology to prevent old or unlicensed pods from being used in the brewer.Gasparro, Annie. "Keurig Stumbles With New K-Cup Brewer". The Wall Street Journal. February 4, 2015. The digital lock-out sparked hacking attempts and anti-trust lawsuits.Munarriz, Rick Aristotle. "Keurig 2.0 Is Leaving a Bitter Taste in a Lot of Mouths". Daily Finance. October 9, 2014.D'Ambrosio, Dan. "Lawsuits claim Keurig Green Mountain violating antitrust laws". Burlington Free Press. April 12, 2014.Kirsner, Scott. "Hacked K-cups latest in battle over Keurig coffeemakers". The Boston Globe. December 19, 2014.Kline, Daniel. "Keurig 2.0 Can Survive Knockoff K-Cups". The Motley Fool. September 8, 2014. The Keurig 2.0 K-Cup pods come in 400 varieties from 60 brands, and as of 2015, the 2.0 K-Cup, K-Carafe, and K-Mug pods encompass 500 varieties from 75 brands. Keurig Plus . Keurig.com. Retrieved March 21, 2018. The 2.0 brewer also has the capacity to brew full carafes in three settings, from 2 to , via the use of the new K-Carafe pod.Crist, Ry. "Keurig 2.0 brews up DRM to freeze out copycat cups". CNET. March 3, 2014.Dzieza, Josh. "Inside Keurig's plan to stop you from buying knockoff K-Cups". The Verge. June 30, 2014. "Green Mountain Coffee Roasters Unveils Next-Generation Keurig Carafe Innovation". Business Wire. January 29, 2014. Beverage Support – K-Carafe Pods . Keurig.com. Retrieved May 20, 2015.
In March 2015, Keurig launched the K-Mug pod, a recyclable pod that brews large travel mug–sized portions.Prafder, Erika. "K-CUPS’ SERVING SIZE TOO SMALL? KEURIG INTRODUCES PODS THAT WILL FILL UP YOUR MUG". Digital Trends. March 24, 2015. The K-Mug pods, for use in the Keurig 2.0 brewing system, brew 12-, 14-, and 16-ounce cups, and the plastic is recyclable Polypropylene.Jed, Emily. "Keurig Launches K-Mug Pods For Travel Mugs" . Vending Times. Vol. 55, No. 4, April 2015. "Keurig Makes Coffee To-Go Easier with Launch of K-Mug® Pods". Business Wire. March 23, 2015.
In mid-2015, Keurig debuted the K200, a smaller Keurig 2.0 model that can brew single cups or four-cup carafes and comes in various colors.Bennett, Brian. "Keurig's new compact coffeemaker makes a splash in fresh kitchen-friendly colors". CNET. March 1, 2015. "The Keurig 2.0 Brewing System Lineup Expands with the Addition of the New K200 Series" . Keurig Green Mountain (press release). Investor.KeurigGreenMountain.com. March 2, 2015. General Electric announced that its new Café French Door refrigerator, due out in late 2015, will have a Keurig coffee machine built into the door.Liszewski, Andrew. "GE's New Fridge Has a Keurig Coffee Machine Built Right Into the Door". Gizmodo. January 14, 2015.Bowerman, Mary. "$3,300 refrigerator will make your coffee with Keurig". USA Today. January 19, 2015.
In September 2015, Keurig launched a line of Campbell's Soup available in K-Cups.Bowerman, Mary. "Keurig unveils Campbell's Soup K-Cups". USA Today. September 10, 2015. "Campbell's Fresh-Brewed Soup, The First-Ever Hot Soup Made Exclusively for the Keurig Hot Brewing System, Now Available on Keurig.com" (press release). Investor.KeurigGreenMountain.com. September 9, 2015. The Campbell's Fresh-Brewed Soup Kits come with a packet of noodles and a K-Cup soup pod. The product is available in two varieties: Homestyle Chicken Broth & Noodle, and Southwest Style Chicken Broth & Noodle.
Also in September 2015, Keurig launched Keurig Kold, a brewer that creates a variety of cold beverages including soft drinks, functional beverages, and sparkling waters. The machine brews beverages from The Coca-Cola Company (e.g. Coca-Cola, Diet Coke, Coke Zero, Sprite, Fanta) and the Dr Pepper Snapple Group (e.g. Dr Pepper, Canada Dry) and Keurig's line of flavored sparkling and non-sparkling waters and teas, sports drinks, and soda-fountain drinks.
In December 2015, it was announced that Keurig Green Mountain would be sold to an investor group led by private equity firm JAB Holding Company for nearly $14 billion. The acquisition was completed in March 2016.
Keurig launched Drinkworks Home Bar in late 2018, developed by Keurig Dr Pepper and AB-InBev. The machine creates cocktails, beers and ciders through 24 different pods. The device launched to the general public in 2019. In December 2021 Keurig announced it was discontinuing the platform and offered refunds for the machines to purchasers.
The machines brew the K-Cup beverage by piercing the aluminum foil seal with a spray nozzle, while piercing the bottom of the plastic pod with a discharge nozzle. Grounds contained inside the K-Cup pod are in a coffee filter. Hot water is forced under pressure through the K-Cup pod, passing through the grounds and through the filter. A brewing temperature of is the default setting, with some models permitting users to adjust the temperature downward by five degrees. Keurig – Brewer Support. Retrieved May 4, 2015.
The key original patent on the K-Cup expired in 2012.Johnston, Katie. "Another challenge for K-Cup maker". The Boston Globe. 12 June 2012. Keurig has later patents, including on the filtration cartridge used in K-Cups, and has also launched a number of new pods since the beginning of 2012.
Its brewing systems for home use include single-cup brewers, and brewers that brew both single-cups and carafes. Keurig also sells commercial brewing models for offices and commercial venues. Keurig also licenses their brewing system for use in other appliances such as refrigerators.
Some of Keurig's additional awards since 2012 have included:
The cup portion of the K-Cup is made of #7 plastic, and although according to the company it is Bisphenol A-free, safe, and meets or exceeds applicable FDA standards, it cannot be recycled in most places. Even in the few locations in Canada where #7 plastic is recycled, the small size of the pods means they can fall through sorting grates.
In late 2005, Green Mountain and Keurig launched the My K-Cup reusable and refillable pod, which could be filled with any brand of coffee.Brewer, Jay. "Reusable Coffee Filter for Keurig". SingleServeCoffee.com. September 28, 2005.Brewer, Jay. "Review: My K-Cup Keurig Reusable Filter". SingleServeCoffee.com. January 5, 2006.Barbash, Fred. "Keurig’s K-Cup screw-up and how it K-pitulated Wednesday to angry consumers". The Washington Post. May 7, 2015. The product was discontinued in August 2014 with the launch of the Keurig 2.0 brewing system, and the 2.0 did not accept the My K-Cup pods. Consumer backlash prompted the company to announce in May 2015 that it was bringing back the My K-Cup and making it compatible with the 2.0 brewers.
In 2011, GMCR launched the Grounds to Grow On program, in which office customers purchase recovery bins for used K-Cups, which are shipped to Keurig's disposal partner, which composts the coffee grounds and sends the pods to be incinerated in a waste-to-energy power plant. Grounds to Grow On. GroundsToGrowOn.com. Retrieved May 7, 2015.Craves, Julie. "K-Cups are now recyclable! Not really." Coffee & Conservation. CoffeeHabitat.com. September 1, 2011. Critics point out that incineration produces airborne pollutants.Allen, Ginger. "Coffee Machine Maker In Hot Water Over Plastic Cups". CBS KTVT. DFW.CBSLocal.com. October 12, 2011.
Regarding potential recyclability, GMCR's vice president of sustainability stated in 2013 that "The system has a lot of pretty demanding technical requirements in terms of being able to withstand certain amount of temperature and to have a certain kind of rigidity, and provide the right kinds of moisture barriers and oxygen barriers and the like. So it isn't the simplest challenge."Kalish, Jennifer. "Coffee makers wrestle with recyclability of single-serve pods". Plastics News. June 3, 2013. In 2015, Keurig Green Mountain's chief sustainability officer stated that every new K-Cup spin-off product introduced since 2006 – including the Vue, Bolt, K-Carafe, and K-Mug pods – is recyclable if disassembled into paper, plastic, and metal components.Hamblin, James. "A Brewing Problem". The Atlantic. March 2, 2015. James Hamblin, writing in The Atlantic, argues that the level of conscientiousness required to disassemble the cups is somewhat of a paradox to expect from people using a push-button brewing process. In its 2014 Sustainability Report, released in February 2015, Keurig Green Mountain re-affirmed that a priority for the company is ensuring that 100% of K-Cup pods are recyclable by 2020. "Keurig Green Mountain, Inc. Releases 2014 Sustainability Report, 'Beyond The Cup'". Yahoo! Finance. February 19, 2015. "Keurig Green Mountain, Inc. Releases 2014 Sustainability Report, 'Beyond The Cup'" . Business Wire. Investor.KeurigGreenMountain.com. February 19, 2015. Update on a Recyclable K-Cup Pack. KeurigGreenMountain.com. Retrieved March 20, 2015. Sustainability – Creating Sustainable Products. KeurigGreenMountain.com. Retrieved March 20, 2015. Addressing Our Environmental Impact – Keurig® Brewing Systems. KeurigGreenMountain.com. Retrieved March 20, 2015.
In August 2014, the Canadian chain OfficeMax Grand & Toy partnered with the New Jersey company TerraCycle to launch a K-Cup recycling program for businesses in Canada, using a recycling box purchased by the businesses and shipped to TerraCycle for recycling when full.Kaye, Leon. "OfficeMax, TerraCycle Launch K-Cup Recycling in Canada". TriplePundit.com. August 25, 2014. In February 2015, TerraCycle launched a similar program for residential use in the U.S.: consumers purchase a Zero Waste Box which can hold 600 capsules, and when full, the box, which has a pre-paid UPS label, is shipped to TerraCycle for recycling. "Easily Recycle Your K-Cups With Zero Waste Boxes From TerraCycle". CoffeeForLess.com. February 4, 2015.Levans, Katie "K-Cup Inventor Admits He Doesn’t Have a Keurig, Regrets Inventing Them ... Find Out Why". EcoWatch. March 5, 2015. Coffee Capsules - Zero Waste Box™. TerraCycle. ZeroWasteBoxes.TerraCycle.com. Retrieved May 8, 2015.Pizzi, Jenna. "Are K-Cups the cigarette butt of the coffee industry? N.J.'s TerraCycle accepts recycling challenge". NJ.com. May 6, 2015.
In 2015, Egg Production created a Cloverfield-like short video on YouTube entitled "Kill The K Cup" to promote awareness of the waste impact of K Cup, starting the hashtag #KillTheKCup, and reporting that there were enough K pods sold in 2014 to circle the earth 10.5 times.
To handle the U.S. anti-competitive lawsuits, in June 2014 the United States Judicial Panel on Multidistrict Litigation consolidated the litigation into one docket in the Southern District of New York, where Judge Vernon S. Broderick heard the consolidated case.Gurrieri, Vin. "Consolidated Keurig Antitrust Cases To Brew In NY". Law360. June 4, 2014. The case had 46 plaintiffs, consisting of indirect purchasers, direct purchasers, and two competitors. Common allegations of the multidistrict litigation include claims that Keurig improperly acquired competitors, entered into exclusionary agreements with suppliers and distributors to prevent competitors from entering the market, engaged in unwarranted patent-infringement litigation, and unfairly introduced a product redesign that locks out non–Keurig branded cups.
The introduction of the Keurig 2.0 brewer also sparked a number of hacks and workarounds by competitors and consumers in 2014. Rogers Family Coffee, one of the plaintiffs in the anti-trust lawsuits, created a "Freedom Clip" allowing unauthorized pods to work in the brewer. "Brewing cups from any coffee company in new Keurig machine" . KPRC-TV. Click2Houston.com. December 12, 2014. Another plaintiff, TreeHouse Foods, claimed to be able to produce its own pods that would work in the 2.0 system.Abel, Jennifer. "Keurig competitors crack company's DRM code". ConsumerAffairs. August 28, 2014. A Canadian company, Mother Parkers Tea & Coffee, announced a capsule which would be compatible with the Keurig 2.0.Jed, Emily. "Mother Parkers Introduces Keurig 2.0-Compatible Capsules" . Vending Times. Vol. 54, No. 12, December 2014.
In December 2014, the company recalled about 7 million of its Keurig Mini Plus Brewing Systems manufactured between December 2009 and July 2014 and sold in the U.S. and Canada. The recall was due to burn injuries reported from water overheating and spewing out of some of the machines, particularly if used to brew more than two cups in quick succession. "Keurig Recalls MINI Plus Brewing Systems Due to Burn Hazard". U.S. Consumer Product Safety Commission. December 23, 2014. SAFETY RECALL NOTICE – REPAIR REQUIRED. Keurig Product Information. December 2014.
By the first quarter of 2015, Keurig sales had dropped 23 percent year over year partly due to unease over Keurig 2.0. In response, Keurig announced they would revive the reusable My K-Cup product by the end of the year.
In November 2017, Keurig posted on its Twitter account that it had ended its advertisements with Sean Hannity's program on Fox News, in reaction to Hannity's defense of Senate candidate Roy Moore, who had been accused of sexual misconduct against teenage girls. In response, videos of Hannity's fans destroying their Keurig machines proliferated on the Internet, with automated Russian accounts supporting Hannity's position on Twitter. In an internal email, Keurig CEO Bob Gamgort wrote that the way Keurig handled the situation was "highly unusual" and gave the unintended impression that the company had taken sides. Gamgort also announced an overhaul of Keurig's communications policies.
In October 2020, Keurig agreed to settle for $31 million an antitrust lawsuit alleging they cornered the single-serve brewer market by making their machines only accept K-Cup coffee pods. Affected consumers had until July 15, 2021, to file a claim for the class action settlement.
Nick Lazaris was president and CEO of Keurig, Inc. from 1997 to 2006. A Progress Update from Bob Stiller (CEO) on Green Mountain's Investment in Keurig, Inc. SEC.gov. May 15, 2003. Keurig, Inc. was fully acquired by Green Mountain Coffee Roasters in 2006; at the time, GMCR's founder Bob Stiller was its president and CEO. "Green Mountain Coffee Roasters Announces Appointment of Lawrence J. Blanford as President and CEO". Business Wire. May 3, 2007.D'Ambrosio, Dan. "Green Mountain Coffee shakes up top board members over stock sales". Burlington Free Press. May 8, 2012. Stiller stepped down in 2007, but remained chairman until May 2012. Lawrence J. Blanford became Green Mountain Coffee Roasters' President and CEO in 2007. Lawrence J. Blanford – Executive Profile at Bloomberg. Brian Kelley, previously chief product supply officer of Coca-Cola Refreshments, became the President and CEO of Green Mountain Coffee Roasters (later Keurig Green Mountain) in December 2012.Julie Jargon. "Green Mountain Names Coke's Brian Kelley as New CEO". The Wall Street Journal. November 20, 2012. "Green Mountain Coffee Roasters, Inc. Appoints Brian Kelley CEO Effective December 3, 2012" . Investor.KeurigGreenMountain.com (press release). November 20, 2012.
Robert Gamgort, who had been CEO of Pinnacle Foods, replaced Brian Kelley as Keurig Green Mountain's CEO in May 2016 after KGM was acquired by an investor group led by JAB Holding Company, Robert J. Gamgort – Executive Profile at Bloomberg. Retrieved July 15, 2016.Beilfuss, Lisa. "Keurig Green Mountain Snags Pinnacle Food’s CEO". The Wall Street Journal. March 23, 2016.
and he remains CEO of the newly merged, publicly traded conglomerate Keurig Dr Pepper.
Keurig Dr Pepper
Products
Keurig K-Cup brewing systems
Brewing system models
Beverage varieties and brands
Keurig-owned brands
Keurig partner brands
Competition
Awards
Corporate affairs
Environmental impact
Legal and media issues
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