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Coffee Innovation: Keurig Dr Pepper Expands Global Reach with New Liquid Espresso Concentrates
Dive Brief:
- Keurig Dr Pepper is enhancing its presence in the iced coffee and customized beverage market with the worldwide launch of liquid espresso concentrates. Available in Pure Black, Sweet Caramel, and Rich Mocha flavors, these products will be distributed under four of the company’s renowned brands – L’Or, Jacobs, Kenco, and Douwe Egberts.
- This move builds on Keurig Dr Pepper’s success in providing liquid coffee solutions to various establishments. By introducing a consumer-packaged goods (CPG) offering for these brews, the company is entering a competitive market, challenging popular concentrates from Starbucks and Nescafe.
Dive Insight:
Cold coffee consumption is on the rise globally, especially among Generation Z. Keurig Dr Pepper’s introduction of the new CPG line aims to capitalize on this trend. According to Ricard Barri Valentines, Chief Marketing Officer for Keurig Dr Pepper’s coffee division, these espresso concentrates have the potential to attract new consumers to the retail coffee segment and create fresh opportunities for existing coffee drinkers.
The cold brew coffee market, currently valued at $3.79 billion, is projected to grow at a 17% rate by 2031, as reported by Mordor Intelligence. Keurig Dr Pepper’s platforming strategy, which focuses on scaling innovation across its product range, is highlighted through this new offering.
As Keurig Dr Pepper prepares to split its coffee and beverages business into two separate entities, recent financial reports indicate substantial growth. Net sales surged by 75.6% year-over-year to $7.31 billion, driven primarily by the acquisition of Peet’s. Excluding Peet’s, sales still saw a noteworthy 7.3% increase.