But beginning tomorrow, Coca-Cola will offer its consumers the ability to do something they’ve never been able to before: to make a Coke at home. But there are also other brands like Dr. Pepper, Canada Dry, and Fanta, along with Kreurig’s own Flyte, Waterful, and Red Barn Craft Soda. “KOLD extends our reach from the morning day part to an all-day, all-night appliance”, said Kelley, who noted that, the cold nonalcoholic beverage category is five times larger than the hot drink market, according to IRI. As my colleague Paul LaMonica points out, SodaStream joined Keurig in reporting “lousy” results last quarter, which doesn’t augur well for the Kold.
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The suggested retail price for the machine ranges from $299 to $369 depending on promotions, with each pod costing between .12 and .25 to make an 8-ounce serving. Just like in their coffee versions, the capsules contain everything needed to produce the drink, bothy syrup and the carbon dioxide bubbles. Williams Capital decreased their target price on shares of Keurig Green Mountain from $151.00 to $63.00 and set a “buy” rating on the stock in a research report on Thursday, August 13th. The strategic partnership provides a strong platform for Keurig KOLD to grow globally.
Keurig Green Mountain Incorporated (NASDAQ:GMCR) shares will open today at 55.33 after closing yesterday at 55.52.
The machine comes from Keurig’s existing partnership with soft drink giant Coca-Cola. Like the Keurig coffee machine, the Kold is a personal beverage system that makes carbonated drinks, using name-brand flavor pods. Now the company Insiders own 0.1% of Keurig Green Mountain, Inc. In addition to going on sale on its website Tuesday, the company says the Kold will be available starting in October at select retailers in Atlanta, Boston, Chicago, Dallas, Los Angeles and New York. The 2.0, the second generation coffee pod brewer, angered consumers because it only worked with licensed K-Cups. “Maintaining an effective ground game will ensure consumers are experiencing the system and tasting the beverages for themselves – which will expand our installed base”, Murphy said.
Once a piping-hot growth stock, Keurig closed Monday at $53.19, down 4.2 percent and well off its high of $158.87 in the past year. Mark Astrachan, an analyst at Stifel Financial Corp., warned that Keurig’s coffee sales have almost peaked.
Mashable’s Ulanoff asked Kelley if he was concerned about third-party pod makers cannibalizing his new business, as has happened with Keurig K-Cups.
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The company introduced its new Keurig Kold, a machine that lets consumers make carbonated beverages like Coca-Cola and Dr Pepper, sports hydration drinks, seltzers and cocktail mixers with just a push of a button. As Keurig prepared to launch its competing at-home soda maker, SodaStream officially added Pepsi to its lineup this month.
