Dive Brief:
- Keurig announced it is discontinuing the first generation of its Keurig Kold at-home cold beverage system, which debuted in September. The company is offering consumers a full refund for the device.
- The decision to discontinue Kold production is leading to the loss of about 130 jobs, 108 based in Vermont. They include employees involved in the production of Keurig Kold pods and related support team members.
- "We view our initial KOLD system launch as a pioneering execution. We learned a lot – including that consumers are willing to embrace the concept of a system that delivers fresh-made, cold beverages in the home – and we’ll build our learnings into future beverage systems," a Keurig spokesperson said in a statement.
Dive Insight:
Keurig Kold was plagued from the start by concerns about its high suggested retail price. The $299-$369 price tag (plus regular pod purchases) always seemed out of touch.
Support for the Kold concept is credited to former Keurig CEO Brian Kelley, who has since been promoted to vice chairman of the board, the Burlington Free Press reported. Keurig's new CEO Bob Gamgort, former head of Pinnacle Foods, and new owner, JAB Holding Co, which completed its purchase of Keurig in March, could have influenced this decision.
With JAB in control, it's unclear whether the Keurig Kold will reappear in the future in a new iteration or if the Kold concept is a blip in a history of hot drinks. JAB recently announced its acquisition of Krispy Kreme, and the company already owns majority stakes in brands like Peet's Coffee & Tea, Caribou Coffee, and Stumptown Coffee Roasters.
These purchases skew JAB's focus in the direction of being a coffee-centric conglomerate and explains why Kold didn't fit. This may put an end to future Kold developments (though Keurig didn't confirm in its statement whether this Kold device would be the last).
Keurig Kold's discontinuation may also impact others in the industry. SodaStream has recently begun seeing the fruits of its rebranding from an at-home soda machine to a sparkling water maker. SodaStream's shares spiked intra-day on the news of Keurig pulling the Kold system, which had been in direct competition with SodaStream's previous and current markets, MarketWatch reported.