Supplier News Breaks Archives
Kraft Foods enters licensing pact with Keurig
August 22nd, 2014
WATERBURY, Vt., and NORTHFIELD, Ill. – Keurig Green Mountain Inc. and Kraft Foods Group Inc. have unveiled a multiyear licensing, manufacturing, and distribution agreement to make Kraft's branded coffees available in Keurig portion pack formats compatible with Keurig consumer and commercial brewing systems in the United States.
The companies said Friday that the licensing pact will enable U.S. consumers to buy Kraft coffee brands including Maxwell House, Gevalia and Yuban — as well as a recent addition, McDonald's McCafe — in a variety of licensed Keurig portion pack formats.
"At Kraft, we have made significant strides in rejuvenating our coffee business across all segments — including mainstream, premium and on-demand — by focusing on driving profitable growth for our brands and our customers," stated Dino Bianco, executive vice president and beverages president at Kraft. "This agreement offers the opportunity for expanded distribution across multiple channels."
The Kraft coffee brands will be available in Keurig K-Cup, K-Carafe and Bolt packs. According to the companies, Keurig-licensed Kraft-branded portion packs will start rolling out this fall. Initially, both Kraft and Keurig will handle manufacturing for single-serving pods. After a transition period, Keurig will become the exclusive manufacturer of Kraft-branded Keurig packs using coffee sourced, roasted and blended by Kraft.
Financial terms of the agreement weren't disclosed.
"We hear time and time again that consumers consistently choose the Keurig brewing system for the quality, simplicity, value and, most importantly, the variety of brands and beverages available in the system," commented Brian Kelley, Keurig president and chief executive officer. "Adding Kraft's celebrated brands to the licensed Keurig family means Keurig consumers will be able to enjoy even more beverages they know and love with the quality and consistency they expect from their Keurig brewer."
Earlier this week, Kraft and McDonald's announced an agreement to make the fast-food chain's McCafe coffee brand available in supermarkets and other food retailers nationwide. Plans call for ground, whole bean and single-cup McCafe coffees to roll out to grocery, mass merchandise and drug stores starting in early 2015.