Keurig says it’s finally rolling out plastic-free, eco-friendly coffee pods, but there’s a big catch.
The maker of single-serve coffee machines for home and office use announced Tuesday that it is introducing K-Rounds, made from coffee grounds wrapped in a plant-based protective coating that contains no plastic or aluminum.
However, Keurig also said that K-Rounds is only compatible with the company’s Alta brewer. The company says the device is still in development and beta testing is expected to begin this fall.
The company says the upcoming Alta machine will allow consumers to “make a variety of barista-style hot and cold drinks,” including espresso and iced coffee.
Sales of Keurig Dr Pepper in the fourth quarter were lower than market expectations as demand for carbonated drinks and tonic water from beverage manufacturers declined due to soaring product prices.
Beverage makers have raised prices to counter soaring prices for products such as coffee and sugar, but rising inflation has made consumers more frugal and lower sales volumes for soda makers like Keurig and major rival PepsiCo. is in decline.
Keurig Dr Pepper had quarterly net sales of $3.87 billion, compared to analysts’ average estimate of $3.91 billion, according to LSEG data.
In fiscal 2023, volumes decreased 2.1% while prices increased 7% and adjusted gross margin increased 150 basis points.
The 7UP soda maker had quarterly adjusted earnings of 55 cents per share, compared to expectations of 54 cents.
Net sales for the company’s core U.S. coffee business fell 9.9% to $1.2 billion, as sales volumes declined 10.7% due to a decline in global home coffee consumption.
The company also expected fiscal 2024 adjusted earnings per share to beat expectations.
Keurig stock rose 0.7% and was trading at about $29.52 per share as of 1pm ET on Wednesday.
with post wire
