Dive Brief:
- Keurig Green Mountain and Campbell are officially debuting Campbell's Soup K-Cups, the first non-beverage K-Cups product from Keurig.
- The launch came two years after initially announcing the partnership, during which time the companies were making sure they got "the product right," Michael Goodman, marketing director of innovation at Campbell Soup, told USA TODAY.
- General Mills had already made Progresso soup and Nature Valley oatmeal pods, but those products were not directly tied to Keurig, and they do not work on Keurig's latest brewer.
Dive Insight:
The partnership is a good fit, not just because of the machine's ability to make food with hot water in addition to beverages, but also because 80% of customers who buy K-Cups also buy Campbell's soups, according to Campbell's officials.
Both companies are looking for new ways to boost slowing sales. Keurig recently announced that it would trim 5% of its workforce, more than 300 jobs, after reporting a 26% sales decline for brewers and accessories in the previous quarter, in addition to a 1% decrease in pod sales. Campbell did not see much organic sales growth in its own recent quarter, despite significant efforts to make its products more appealing to health-conscious consumers.
This marks yet another partnership for Keurig, which could play a key role in helping the company sell more Keurig 2.0 brewers. Keurig has also entered into deals with Starbucks, Dunkin' Brands, and Maxwell House and other brands from the now Kraft Heinz.