Keurig Green Mountain Inc., known for its beverage brewing systems and single-serve pods of coffee and tea, is hoping to turn its fortunes around with a new machine, called Keurig Kold, that will allow buyers to concoct their own cold drinks.
Keurig Kold - essentially a home soda fountain - allows buyers to create their favorite sodas "fresh at the push of a button." The machine is similar in concept to Keurig's brewers which does the same thing as Keurig Kold, but with coffee and tea.
Coca-Cola in particular is betting big on the product, with a 16 percent stake in the company, reported the Advertising Age. The two first partnered in Feb. 2014 when the pair announced a deal to collaborate on the development of Coca-Cola branded products for use in the system. Kold is the product of that partnership.
The machines are expected to be going on sale on its website Tuesday, and by October, the machines will be sold at select retailers in Atlanta, Boston, Chicago, Dallas, Los Angeles and New York, according to the Associated Press.
While an attention grabbing idea, there are still some qualities about the Kold, mainly related to the price, that is a cause for concern, reported the New York Times.
The suggested retail price for the machine ranges from $299 to $369 depending on promotions, with each pod costing between $1.12 and $1.25 to make an 8-ounce serving. Since people can already by 2-liter bottles and a six pack of sodas for less on a per-saving basis, many question who the target audience for the product is.
In response to naysayers, Keurig CEO Brian Kelley explained that it's a way to have a variety of drinks at their disposal without having cans and bottles take up space in their homes.
"It's a premium - it's about choice and convenience," he said.
Senior VP Tara Murphy also noted that Kold is being aimed at bars and den areas, while keeping it away from kitchen counters already occupied by Keurig coffee makers.
"It's for people who entertain a lot and want to have the latest technology to show off," she said.
For those with a Keurig coffee maker, or any machine taking up space on their counter top don't fret: Keurig says it's working on a machine that could serve both hot and cold beverages.
