Keurig Aims To Heat Up Brewer Segment For The Holidays

NEW YORK— With its Kold unit now in the marketplace, Keurig remains bullish on its hot segment, despite a tough 12 months since the launch of its 2.0 brewer assortment in the back half of 2014.

“We are now through what we knew would be a tough transition,” said Brian Kelley, Keurig president/CEO. “We are about to enter another holiday season and we have high expectations.”

Since the debut of 2.0, brewer sales at Keurig are off double-digits. In its fiscal year third quarter, the company reported a 26% drop in brewer sales, which followed brewer sales declines of 23% and 18% respectively in the second and first quarters.

Kelley said the recent release of Keurig’s K200 single-serve unit that is part of the 2.0 platform is “doing well” and receiving positive consumer reviews. A review by HOMEWORLD BUSINESS® of consumer feedback on Amazon.com found that the K200 had a 4.5 star rating and received 5 stars from 68% of the nearly 1,800 reviews.

When looking back at the challenges faced with 2.0 over the past year, Kelley acknowledged the issues faced by previous Keurig owners with pods that were not compatible with the new platform. He also said the technological advances in 2.0 may have been more than wanted by Keurig owners who liked the simplicity of their prior Keurig brewer.

On the new product development side, Kelley sees additional opportunities in the hot beverage category, specifically with beverages such as lattes and cappuccino.

“The consumer knows what they want, but they just don’t want to stand in line to get it,” he said. “What they want is to be able to push a button and get the perfect drink.”