Packaged Facts: Keurig Strengthens Brewing Technology with $220 Million Acquisition

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Dec 09, 2014, 10:43 ET

ROCKVILLE, Md., Dec. 9, 2014 /PRNewswire/ -- Specialty coffee retailer Keurig Green Mountain Inc., an already dominant presence in the U.S. coffee market, will acquire the remaining shares of Bevyz (MDS Global Holding P.L.C.) in a $220 million deal effectively strengthening Keurig's innovative brewing technology and single-portion pack portfolio. Keurig Green Mountain already owned roughly 15% of Bevyz, which is known for developing a single-portion multidrink system that dispenses both hot and cold beverages.

"The acquisition of Bevyz adds unique and complementary technology and research and development capabilities," said Brian Kelley, Keurig's President and CEO in a company statement.

Keurig Green Mountain's 2013 coffee sales reached an estimated $1.4 billion, an increase of 25% over the previous year. Single cup accounts for the lion's share of company sales at 97%. Ground/whole bean sales as well as a small contribution from RTD/iced coffee comprise the remainder. Overall, Keurig Green Mountain's 15% share of the U.S. retail coffee market is second only to J.M. Smucker, according to Coffee and Ready-to-Drink Coffee in the U.S.: Retail and Foodservice, 8th Edition. The report can be found at: http://www.packagedfacts.com/redirect.asp?progid=86583&productid=8133971.

Keurig's revenue could conceivably skyrocket with the extension into cold beverages outside the coffee segment made possible following the full acquisition of Bevyz. Keurig Green Mountain has officially announced plans to introduce the Keurig Cold platform next fall. The system, which is being developed in collaboration with Coca-Cola, will create a variety of cold beverages, including carbonated drinks, enhanced waters, juice drinks, teas, and sports drinks.

For more information on Keurig and other major companies featured in Coffee and Ready-to-Drink Coffee in the U.S.: Retail and Foodservice, 8th Edition please visit: http://www.packagedfacts.com/Coffee-Retail-Foodservice-8133971/.

About Packaged Facts – Packaged Facts, a division of MarketResearch.com, publishes market intelligence on a wide range of consumer market topics, including consumer demographics and shopper insights, consumer financial products and services, consumer goods and retailing, consumer packaged goods, and pet products and services. Packaged Facts also offers a full range of custom research services.

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SOURCE Packaged Facts