Keurig Green Mountain: Case Study
Executive Memorandum: Keurig Green Mountain
The purpose of this memorandum is to request funding for the expansion of Keurig Green Mountain’s coffee business to Kuwait. Keurig Green Mountain is a beverage system company that has developed innovative technology and brand partnerships to dominate the personal beverage market in the United States and Canada. The coffee based company has more than 80 brands and 575 beverage varieties (Keurig Green Mountain, 2016). The company has experienced a 4.4 percent decline in revenue from $4.7 to $4.5 billion in 2014 and 2015 respectively (GRM, 2015). With declining revenues, it is important for Keurig to consider options to increase consumer base by seeking global opportunities. In 2015, the company launched the Keurig 2.0 which was aimed at increasing consumer base, but failed to do so. Unfortunately, sales of the Keurig 2.0 did not spark the interest of consumers in the U.S. and Canada because the new machine did not accept all K-cups (Peterson, 2015). Another important …show more content…
The acquisition of Keurig Green Mountain by JAB is very relevant to the expansion opportunity of KGM to Kuwait. JAB is a European investment firm that is very competitive in the global market. JAB has acquired several other American coffee-based chains to include Caribou Coffee Co, Peet’s Coffee and Tea, and Einstein Bros. Bagel (Gasparro, 2015). The acquisition of Keurig allows JAB to improve competitive position in the global coffee market and the possibility to compete with its global rival, Nestle Nespresso. Right now, Nestle Nespresso is dominating the global market with its pod-based brewers without much competition. The acquisition of Keurig Green Mountain by JAB Holding Company provides the financial resources and global perspective necessary for Keurig to expand its brewer and pods to
The purpose of this memorandum is to request funding for the expansion of Keurig Green Mountain’s coffee business to Kuwait. Keurig Green Mountain is a beverage system company that has developed innovative technology and brand partnerships to dominate the personal beverage market in the United States and Canada. The coffee based company has more than 80 brands and 575 beverage varieties (Keurig Green Mountain, 2016). The company has experienced a 4.4 percent decline in revenue from $4.7 to $4.5 billion in 2014 and 2015 respectively (GRM, 2015). With declining revenues, it is important for Keurig to consider options to increase consumer base by seeking global opportunities. In 2015, the company launched the Keurig 2.0 which was aimed at increasing consumer base, but failed to do so. Unfortunately, sales of the Keurig 2.0 did not spark the interest of consumers in the U.S. and Canada because the new machine did not accept all K-cups (Peterson, 2015). Another important …show more content…
The acquisition of Keurig Green Mountain by JAB is very relevant to the expansion opportunity of KGM to Kuwait. JAB is a European investment firm that is very competitive in the global market. JAB has acquired several other American coffee-based chains to include Caribou Coffee Co, Peet’s Coffee and Tea, and Einstein Bros. Bagel (Gasparro, 2015). The acquisition of Keurig allows JAB to improve competitive position in the global coffee market and the possibility to compete with its global rival, Nestle Nespresso. Right now, Nestle Nespresso is dominating the global market with its pod-based brewers without much competition. The acquisition of Keurig Green Mountain by JAB Holding Company provides the financial resources and global perspective necessary for Keurig to expand its brewer and pods to