By the close of 2014 in the next couple weeks, sales of coffee in retail and foodservice are expected to hit $48 billion. To capture some of those sales, coffee shops and brands are going to have to be innovative, embrace change, and get creative with their business decisions. One company that has truly grasped these concepts is none other than K-cup creator, Keurig.
Keurig Green Mountain Inc. previously owned about 15% of Bevyz, the multi-drink system that dispenses hot, cold, and sparking beverages. But, now Keurig is acquiring the remaining shares for approximately $220 million. According to a press release from Packaged Facts, an industry leader in beverage market intelligence, in 2013, Keurig coffee sales reached $1.4 billion.
The purchase of Bevyz is not only going to allow Keurig to gain more of the market share in the beverage industry, especially with at home drinks, but, it is also going to open up new doors for the company as they will now have access to the advance and unique technology and research and development capabilities that Bevyz previously utilized.
Previously, the rise of single-serve coffee brewers for the home has changed the landscape for coffee. According to a report by Packaged Facts, the single-cup brew segment reached $1.8 billion in 2012. Many brands have embraced single-serve beverages over the past several years, both in retail locations and products for in the home. Keurig is hoping to use Bevyz’s technologies to introduce their own line of cold single serve beverages in 2015. These beverages will include carbonated drinks, enhanced waters, juices, sports drinks, and teas.
As more and more coffee companies see the increased competition from innovative industry leaders, like Keurig, we can expect to see new and exciting options for coffee consumption. All companies are going to have to experiment and come up with new beverages to attract the everyday coffee drinker. But, with 75% of coffee drink users saying “hot coffee” is still the drink they prefer, companies are going to have to stick to their roots.
Many companies aren’t just creating new products to ensure that coffee consumers consider their drinks over the competition. According to Packaged Facts, coffee houses are taking advantage of the fact that their consumers are receptive to social media and brand interplay and ahead of the curve when it comes to the newest technologies. Coffee house chains are using this information to create programs that blend social media, mobile technology, and rewards.
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Thanks for reading!
Caitlin Stewart
Marketing Associate
MarketResearch.com
