Problems in plain sight
Keurig Green Mountain’s target market for early adopters will be large families with heavy consumption of cold beverages, Mr. Kelley said.
Ms. Murphy said the Keurig Kold solves a number of problems “hidden in plain sight” for the consumer.
“There are unique challenges with temperature and storage, problems with choice in the home, and issues with freshness, particularly after a traditional product has been opened and closed repeatedly,” she said. “The ‘shopability’ and ease with which that product can be brought home is another key problem. We also know that carbonation level is critical, as it’s a signal of freshness in cold beverages. Keurig Kold solves these problems, and provides fresh made, sparkling and still beverages in the home with the one-touch simplicity of Keurig.”
A key to the system, according to the company, is it does not require the use and replacement of a CO2 canister.
“… Our carbonated pod contains two chambers,” Ms. Murphy said. “So down the bottom, you have the syrup and other flavor. In the second chamber on top, you’ve got the carbonated beads. These beads are filled with pure, beverage grade CO2. And when they come in contact with water, they release the CO2.
“The beads and the small amount of water used to moisten them remain in this pod chamber. While the CO2 floats up, it travels to the Kold chiller to mix with the beverage water. The water that moistens the beads never comes in contact with the beverage.
“This innovative system allows for ease of use for the consumer, while providing perfect dosing of carbonation for the beverage every time without a CO2 canister. And finally, our Kold pods will be recyclable in select communities that accept No. 7 plastic for recycling.”
Keurig Green Mountain has formed partnerships with such notable beverage companies as the Coca-Cola Co. and Dr Pepper Snapple Group to include their brands in the initial launch, but Keurig will offer six of its owns brands as part of the launch this fall.
The six brands include a flavored water, sports drink, a zero-calorie seltzer in Mediterranean flavors, an iced tea, a craft soda that features real cane sugar, and a line of sodas that feature such classic flavors as vanilla. Ms. Murphy said the company is also in the process of developing two mixer brands for the Kold.
“The purpose behind mixers is to allow us to expand Kold and to participate in more beverage occasions,” she said. “We believe we can do this with a strong consumer benefit, consumers having the ability to purchase pods for multiple types of cocktails, while taking up minimal storage space in the home.
“Think about your own bar or refrigerator that has limited space, and mixers that are more likely than not used once or twice, and can go bad before the next occasion. Our mixers will solve that problem. They will also provide ease of preparation for consumers who now have the option to create mixers in an efficient, single-served portion.”
An issue emphasized throughout the presentation focused on how the Kold platform will allow Keurig Green Mountain to expand its reach into additional day parts beyond the hot system.“… We believe single-serve beverages and single-serve systems will be the means by which more and more households will be empowered to experience a new and exciting variety of beverages,” Mr. Kelley said. “The trend toward natural and sustainable will define the types of beverages that get consumed. We believe that variety will expand exponentially, empowering consumers to drink for themselves, thereby democratizing the choice of beverages in the home. And we believe this revolution will occur across more and more beverage categories.”