Keurig Green Mountain has announced a partnership with Kraft Foods to make the latter's branded coffees—including Maxwell House and Gevalia—for Keurig's single-serve brewing systems. The deal is the latest in a string of moves by Keurig, which previously partnered with Coca-Cola to allow people to make various Coke beverages at home. Keurig also previously announced an agreement to distribute packaged McDonald's coffee to retailers, thus allowing consumers to make McCafé drinks at home with their Keurig machines.
Keurig's growth is driven by 1) penetrating at-home and away-from home locations with its brewing systems and 2) driving usage frequency of its single-cup beverages in those brewing systems. And the company is still growing thanks in part to its shrewd partnerships.
Another of Keurig's strong points concerns the variety of channels through which it interacts with customers, ranging from supermarkets, department stores, mass merchandisers, club stores, and convenience stores; to restaurants, hospitality accounts, office coffee distributors, and partner brand owners; and to the internet via its websites. However, it has penetrated far more households than workplaces and foodservice locations, which (along with colleges/universities) it has targeted for growth.