Dive Brief:
- Keurig Dr Pepper is deepening its presence in iced coffee and customized beverages with the global launch of liquid espresso concentrates.
- The new innovation will be available across four of the coffee company’s brands, including L’Or, Jacobs, Kenco and Douwe Egberts. The products will be available in 20 countries in Pure Black, Sweet Caramel and Rich Mocha flavors.
- The launch builds on Keurig Dr Pepper’s experience in bringing liquid coffee to offices, hotels and restaurants. Now with a CPG offering for the brews, Keurig Dr Pepper is taking on popular concentrates from Starbucks and Nescafe.
Dive Insight:
Cold coffee is one of the fastest-growing global coffee trends, particularly among Generation Z, and Keurig Dr Pepper wants to meet the moment with the new CPG line.
“Comparable launches have demonstrated the format’s ability to attract consumers who are entirely new to the retail coffee category, highlighting its potential to expand the market while creating new occasions for existing coffee drinkers,” Ricard Barri Valentines, chief marketing officer for Keurig Dr Pepper’s coffee operation unit, said in a statement. “Above all, espresso concentrate is an open invitation to experiment, remix and make coffee your own.”
The cold brew coffee market is valued at $3.79 billion, and is expected to grow at a 17% growth rate by 2031, according to Mordor Intelligence.
Keurig Dr Pepper said the new capability highlights its platforming strategy, in which it uses one platform to scale innovation across its portfolio.
The offering comes as Keurig Dr Pepper is preparing to divide its coffee and beverages business into two independent entities. Last week, it appointed Russ Torres to lead the coffee spinout, which will include Keurig, Peet’s and Green Mountain Coffee Roasters.
In Keurig Dr. Pepper’s most recent earnings report, net sales grew 75.6% year over year to $7.31 billion, primarily due to the acquisition of Peet’s. Excluding Peet’s, sales grew 7.3%.
