Keurig Dr Pepper is launching a limited-time discounted subscription mannequin for its Keurig Ok-Cup pods because the beverage large seems to juice gross sales amid a risky atmosphere for the espresso class.
The corporate is operating a promotion by its web site, till Could 23, the place customers can “lock in” a reduced value on Ok-Cup espresso pods to be shipped to their houses by the top of 2025. Every field of Ok-Cup pods will probably be 25% off its listed value, and those that opt-in will get entry to early drops and unique launches, Keurig stated. Customers also can cancel their subscription at any time.
The deal comes as espresso costs attain report highs after extreme rainfall, drought and fireplace hit a number of the prime producing nations. Prices are set to rise much more with a ten% tariff on inexperienced espresso, with corporations planning to lift client costs when their backlog of stock runs out.
“With The Value Lock Occasion, we’re not simply providing a promotion – we’re providing peace of thoughts,” stated Mark Gerner, the VP of Keurig.com on the firm. “That is our means of delivering consistency and care in each cup.”
Keurig Dr Pepper has confronted challenges in its espresso phase, reporting a web gross sales decline of three.7% in its final quarter. A part of the problem it’s going through is inflation within the provide chain for inexperienced espresso in addition to tariffs, CEO Tim Cofer advised traders on the corporate’s earnings name.
“We’ll take into account further inflation mitigation steps in response to each inexperienced espresso and tariffs. Extra pricing might be one of many levers, however there are others as properly, productiveness combine and a broader price base,” Cofer stated.
Whereas U.S. espresso consumption has ballooned considerably lately, the variety of Individuals who drink the beverage a minimum of as soon as a day was flat in January 2025 in comparison with the identical interval a 12 months prior. Roughly 66% of American adults reported every day espresso consumption in 2025 in comparison with 67% in January 2024, based on the Nationwide Espresso Affiliation.
A majority of espresso drinkers, 71%, solely put together espresso at residence and don’t purchase it at a espresso store, up from 63% in 2020, the NCA stated.
Firms that play up affordability have been in a position to eke out gross sales beneficial properties regardless of a broader gross sales decline. JM Smucker, which owns lower-cost Cafe Bustelo and Folgers, noticed its espresso enterprise carry out higher than anticipated, as its choices are “a fraction of the associated fee” of espresso store or power drinks.
“Even a Ok-cup is a fraction of the associated fee,” President and CEO Mark Smucker stated on an earnings name in February.
Keurig Dr Pepper can be trying to develop its premium at-home espresso manufacturers, together with Lavazza, La Colombe and Philz Espresso, which can be found at a reduction by the price-lock deal, by emphasizing their high quality to price ratio versus costlier espresso outlets, CEO Cofer stated.
As the corporate works to retain customers, it’s additionally working to evolve the sustainability of its packaging. This 12 months, Keurig additionally teased the following technology of its Ok-Cup pods, Ok-Rounds, that are wrapped in a plant-based coating and don’t include plastic or aluminum. The corporate has not but revealed when the pods will hit the market.
Keurig Dr Pepper is launching a limited-time discounted subscription mannequin for its Keurig Ok-Cup pods because the beverage large seems to juice gross sales amid a risky atmosphere for the espresso class.
The corporate is operating a promotion by its web site, till Could 23, the place customers can “lock in” a reduced value on Ok-Cup espresso pods to be shipped to their houses by the top of 2025. Every field of Ok-Cup pods will probably be 25% off its listed value, and those that opt-in will get entry to early drops and unique launches, Keurig stated. Customers also can cancel their subscription at any time.
The deal comes as espresso costs attain report highs after extreme rainfall, drought and fireplace hit a number of the prime producing nations. Prices are set to rise much more with a ten% tariff on inexperienced espresso, with corporations planning to lift client costs when their backlog of stock runs out.
“With The Value Lock Occasion, we’re not simply providing a promotion – we’re providing peace of thoughts,” stated Mark Gerner, the VP of Keurig.com on the firm. “That is our means of delivering consistency and care in each cup.”
Keurig Dr Pepper has confronted challenges in its espresso phase, reporting a web gross sales decline of three.7% in its final quarter. A part of the problem it’s going through is inflation within the provide chain for inexperienced espresso in addition to tariffs, CEO Tim Cofer advised traders on the corporate’s earnings name.
“We’ll take into account further inflation mitigation steps in response to each inexperienced espresso and tariffs. Extra pricing might be one of many levers, however there are others as properly, productiveness combine and a broader price base,” Cofer stated.
Whereas U.S. espresso consumption has ballooned considerably lately, the variety of Individuals who drink the beverage a minimum of as soon as a day was flat in January 2025 in comparison with the identical interval a 12 months prior. Roughly 66% of American adults reported every day espresso consumption in 2025 in comparison with 67% in January 2024, based on the Nationwide Espresso Affiliation.
A majority of espresso drinkers, 71%, solely put together espresso at residence and don’t purchase it at a espresso store, up from 63% in 2020, the NCA stated.
Firms that play up affordability have been in a position to eke out gross sales beneficial properties regardless of a broader gross sales decline. JM Smucker, which owns lower-cost Cafe Bustelo and Folgers, noticed its espresso enterprise carry out higher than anticipated, as its choices are “a fraction of the associated fee” of espresso store or power drinks.
“Even a Ok-cup is a fraction of the associated fee,” President and CEO Mark Smucker stated on an earnings name in February.
Keurig Dr Pepper can be trying to develop its premium at-home espresso manufacturers, together with Lavazza, La Colombe and Philz Espresso, which can be found at a reduction by the price-lock deal, by emphasizing their high quality to price ratio versus costlier espresso outlets, CEO Cofer stated.
As the corporate works to retain customers, it’s additionally working to evolve the sustainability of its packaging. This 12 months, Keurig additionally teased the following technology of its Ok-Cup pods, Ok-Rounds, that are wrapped in a plant-based coating and don’t include plastic or aluminum. The corporate has not but revealed when the pods will hit the market.
