Keurig in Dutch means excellence. It is the leading single cup brewing system in North America.
The U.S. annual per capita consumption of coffee was
estimated to be 424 servings, which included in-home and
out-of-home roast and ground, instant, and ready-to-drink
The total coffee market in 2008
was estimated to be 1.8 billion pounds, or $19.3 billion. 3
While specialty coffee was only about 17 percent of
total domestic coffee consumption by volume, the sector
had grown to over half the value of the U.S. coffee industry. 5 The specialty coffee market was estimated to be worth
$11 billion annually.
Specialty coffee consumption had
increased over 48 percent in the United States from 2001
Keurig was a technology company in the coffee industry. Keurig brewers represented a fusion of technology and design. To maintain and enhance its position as a leader
in the gourmet single-cup market, Keurig invested significant resources and capital in engineering and research and development. This led to a strong and growing portfolio
Keurig’s integrated engineering team drove fast and innovative product development in all three areas that supported Keurig’s of market-leading, proprietary technology.
single-cup system: brewers, portion packs, and high-speed
packaging lines that manufactured the portion packs. Keurig’s integrated approach to new product development has resulted in accelerated new product launches since 2004.
History of Keurig
Keurig was started in 1992 by Ian Greenwood and Peter Dragone with the belief that the coffee should always be served fresh, at home or at the office. The concept of coffee house taste by the cup was unique and new to the market. Ian Greenwood attained the idea of brewing coffee with which he approached, Peter Dragone, a Harvard business school pass out and with an established background in the food industry. The concept was to create portion packs of premium coffee. The main idea was to serve fresh coffee as there will be no oxygen in the packs, it'll be taken out using special packaging techniques. To establish his point, Ian used a yogurt cup to display the concept, which has a more refined version now called K-cup, sealed with a foil. It was a new concept, which developed from the revolutionary question: Why brew coffee a pot at a time when we drink it a cup at a time?
The two was a combination desirable for a successful business. Greenwood developed a make-shift coffee maker to prove his point that it can work. And Peter worked on the business plan, making presentations to various experienced enterpreneurs and ventured capitalists. They presented the plan to Northeast Office Coffee Association. This was the big organization involved with distributors, equipment manufacturers and other companies for marketing coffee along with other services to businesses. Keurig wanted an own brand of coffee line called True North Coffee. In 1993 after getting the financial help Keurig was able to convince the idea of K-cup to the appliance manufacturers and roasters. But the appliance manufacturers were not sure of having the mass production at the economic cost and roasters thought that the coffee machines will never able to work flawlessly. In late 1994, Dunkin Donuts agreed to purchase two prototype brewers for $15,000. Dunkin Donuts believed that the Keurig's idea was promising and they needed a machine for non-store settings.This gave Keurig a platform to soon be called as a company. In 1994, Keurig got the patent and came up with a prototype. Keurig received small funding from Food Fund that helped them to create handful of higher quality brewer prototypes. Keurig presented the business plan to Green Mountain Coffee Roasters, a premium coffee producer, they wanted to do business with them because that will make them earn lots of rewards. Green Mountain Coffee...