Keurig Brewer Sales Down 22%

Company wide sales at Keurig Green Mountain in its fiscal second quarter were up slightly as continued growth in coffee sales offset a double-digit drop in sales of brewers and related accessories.

Total net sales for the period ending March 28 were $1.12 billion, up from sales of $1.10 billion in the comparable quarter the previous year.

By segment, coffee pod sales were $956.6 million, up 7% from the comparable quarter the previous year. Sales of brewers and accessories were $106.4 million, a drop of 23% over the same quarter in 2014.

Brian Kelley, president and CEO of Keurig Green Mountain, noted that the company’s top-line growth was below company expectations primarily due to the slower than expected transition to the Keurig 2.0 system.

“We are taking actions to reduce brewer inventories, enhance our 2.0 brewer packaging to better communicate our extensive brand variety and step up innovation on our owned brands,” he said. “We remain highly confident in our long term strategy for the Keurig hot system and continue to believe there is a significant runway of opportunity.”

During the quarter, Keurig sold 1.4 million brewers. Company officials said the 22% drop in brewer sales was driven by high inventory levels at retail that negatively impacted shipments in the quarter and a difficult year ago comparison.