Keurig said it is finally rolling out plastic-free, environmentally friendly coffee pods — but there’s a major catch.
The home- and office-based single-serve coffee machine maker announced on Tuesday that it was introducing K-Rounds, which are made from coffee grounds that are wrapped in a plant-based protective coating that is free from plastic and aluminum.
However, the Keurig also said the K-Rounds will only be compatible the company’s Alta brewing machine — a device that’s still in development, with beta testing expected to commence in the fall of this year, according to the company.
The upcoming Alta machine “allows consumers to make a variety of hot and cold barista-style beverages” including espresso and iced coffee, according to the company.
Keurig Dr Pepper missed market expectations for fourth-quarter sales as higher product prices deterred demand for the beverage maker’s sodas and tonic water.
Beverage makers have been hiking prices in a bid to counter soaring costs of commodities like coffee and sugar, but sticky inflation has turned consumers frugal, leading to softer volumes for soda makers including Keurig and bigger rival Pepsico.
Keurig Dr Pepper posted quarterly net sales of $3.87 billion, compared with analysts’ average estimate of $3.91 billion, according to LSEG data.
In fiscal 2023, its volumes fell 2.1%, while prices were up 7%, resulting in adjusted gross profit margin growth of 150 basis points.
The 7UP soda maker’s quarterly adjusted profit came in at 55 cents per share, compared with estimates of 54 cents.
Net sales at its US coffee business, one of its core segments, fell 9.9% to $1.2 billion, as volumes fell 10.7% amid a slowdown in at-home coffee consumption globally.
The company also forecast fiscal 2024 adjusted profit per shares above estimates.
Shares of Keurig were up 0.7% and were trading at around $29.52 per share as of 1 p.m. Eastern Time on Wednesday.
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[Notigroup Newsroom in collaboration with other media outlets, with information from the following sources]
