Dive Brief:
- Keurig Green Mountain is partnering with Peet's Coffee & Tea to launch new K-cup packs of licensed Peet's coffee and tea varieties for the Keurig brewing system.
- The new Peet's K-cup packs will be distributed both through Peet's channels and Keurig's channels for greater market reach.
- Keurig Green Mountain has also renewed its partnership with Starbucks to expand its line of K-cup offerings.
Dive Insight:
Keurig Green Mountain is obviously aware of the competition it now faces from other pod brewing systems after the K-cup patent expired in 2012. One of the ways it has tried to secure its position is by redesigning its machines to only accept the Keurig K-cups. Another way that may be even more effective is the strategy shown above--locking popular brands into exclusive contracts. It already has Starbucks, and now it will have Peet's. Now people who want the convenience of at home brewing and the taste of those brands will have to use a Keurig machine.