http://buyorganiccoffee.org/1548/keurig-sells-out/ Keurig Sells Out Keurig sells out to European JAB Holding Company and the dominant player in the USA single serve market becomes a trophy for a family owned company aiming to dominate the global coffee industry. The New York Times reports that Keurig is becoming part of the coffee empire of a European investor group. A billionaire European family is on a caffeine-fueled binge to roll up the global coffee industry, with a huge bet announced Monday: a $13.9 billion acquisition of Keurig Green Mountain. The all-cash deal, offering an eye-popping premium of 78 percent, took analysts and investors by surprise. Keurig has lately had its share of challenges, facing a saturated market for its single-serving coffee brewers, sluggish sales of pods and a stalled new product. But the JAB Holding Company – the investment arm of the Reimann family, heirs to the German consumer goods company, Joh. A. Benckiser GmbH – is in year three of its quest to dominate the global coffee industry. Keurig, which commands a large majority of the single-serve market in the United States, was a natural next step for the Reimanns. The Reimann family has a controlling stake in the Jacobs Douwe Egberts coffee conglomerate whose brands include Bravo and Bach Espresso. It also has controlling interest in Peet’s Coffee & Tea which in turn acquired Stumptown Coffee Roasters plus Espresso House and Baresso Coffee A/S. Having Keurig in the group provides a platform for selling their various coffees via the single serve route. The article notes that Keurig needed Starbucks too much to drop their brand but that may not be the case with a larger company with worldwide reach. A Reprieve for the K-Cup We wrote recently about the death of the k-cup. Are we going to see the death of the k cup? Keurig, the maker of single serve coffee saw its stock drop 30% after reporting diminishing sales. It would seem that the k cup fad is wearing thin and Keurig has hurt itself by trying to corner the market with a machine upgrade that excludes other brands. That, in the end, is probably the reason for the death of the k cup. With its stock price down 30% or more Keurig has been in trouble. JAB Holding Company can use the single serve approach to improve sales of its various brands and Keurig can use other sources of coffee that reduce it dependence on the likes of Starbucks.

1. By www.BuyOrganicCoffee.org

2. Keurig sells out to European JAB
Holding Company and the dominant
player in the USA single serve
market becomes a trophy for a
family owned company aiming to
dominate the global coffee industry.

3. The New York Times reports that
Keurig is becoming part of
the coffee empire of a European
investor group.

4. A billionaire European family is on a
caffeine-fueled binge to roll up the
global coffee industry, with a huge
bet announced Monday: a $13.9
billion acquisition of Keurig Green
Mountain.

5. The all-cash deal, offering an eye-
popping premium of 78 percent, took
analysts and investors by surprise.

6. Keurig has lately had its share of
challenges, facing a saturated
market for its single-serving coffee
brewers, sluggish sales of pods and
a stalled new product.

7. But the JAB Holding Company – the
investment arm of the Reimann
family, heirs to the German
consumer goods company, Joh. A.
Benckiser GmbH – is in year three of
its quest to dominate the global
coffee industry.

8. Keurig, which commands a large
majority of the single-serve market in
the United States, was a natural next
step for the Reimanns.

9. The Reimann family has a
controlling stake in the Jacobs
Douwe Egberts coffee conglomerate
whose brands include Bravo and
Bach Espresso.

10. It also has controlling interest in
Peet’s Coffee & Tea which in turn
acquired Stumptown Coffee
Roasters plus Espresso House and
Baresso Coffee A/S.

11. Having Keurig in the group provides
a platform for selling their various
coffees via the single serve route.

12. The article notes that Keurig needed
Starbucks too much to drop their
brand but that may not be the case
with a larger company with
worldwide reach.

13. A Reprieve for the K-Cup

14. We wrote recently about the death
of the k-cup.

15. Are we going to see the death of the
k cup?

16. Keurig, the maker of single serve
coffee saw its stock drop 30% after
reporting diminishing sales.

17. It would seem that the k cup fad is
wearing thin and Keurig has hurt
itself by trying to corner the market
with a machine upgrade that
excludes other brands.

18. That, in the end, is probably the
reason for the death of the k cup.

19. With its stock price down 30% or
more Keurig has been in trouble.

20. JAB Holding Company can use the
single serve approach to improve
sales of its various brands and
Keurig can use other sources of
coffee that reduce it dependence on
the likes of Starbucks.

21. Global Reach

22. As Keurig sells out JAB has their
sights on creating a coffee
empire that spans the globe
according to Bloomberg Business.

23. JAB Holding Co. wants to rule the
coffee world.

24. The closely held investment firm that
manages the fortune of Austria’s
billionaire Reimann family took
another step toward that goal
Monday by acquiring Keurig Green
Mountain Inc. for almost $14 billion
in the industry’s biggest-ever deal.

25. JAB has spent more than $30 billion
in the past four years acquiring
coffee companies in the U.S. and
Europe to challenge global leader
Nestle SA.

26. JAB has bought assets including
D.E Master Blenders 1753 NV,
Mondelez International Inc.’s coffee
unit and high-end chain Peet’s
Coffee & Tea.

27. “This is part of a much, much bigger
strategy.

28. JAB wants to be the Budweiser of
the coffee space,” Pablo Zuanic, a
Susquehanna Financial Group
analyst, said, referring to Anheuser-
Busch InBev NV, the world’s biggest
brewer.

29. Our concern is just where the small
grower of healthy organic
coffee fits in this picture. More later.