Keurig, Kraft announce licensing agreement

Maxwell House, Gevalia, Yuban and McCafé brands to join family of Keurig brands

Waterbury, Vt.-based Keurig Green Mountain Inc. and Northfield, Ill.-based Kraft Foods Group Inc. announced a multi-year licensing, manufacturing and distribution agreement for Kraft's branded coffees in Keurig portion pack formats compatible with Keurig consumer and commercial brewing systems in the United States.

Under the new agreement, Kraft coffee brands Maxwell House, Gevalia, Yuban and McCafé will be available in the United States starting in fall 2014 in a variety of licensed Keurig portion pack formats for both the at-home and away-from-home channels, including K-Cup packs for use in Keurig K-Cup Single Cup Brewers and the forthcoming Keurig 2.0 Brewing System; K-Carafe packs for use in the Keurig 2.0 Brewing System; and Keurig Bolt packs for use with the Keurig Bolt Carafe Brewing System, which is suited for large office and foodservice locations.

"We hear time and time again that consumers consistently choose the Keurig brewing system for the quality, simplicity, value and, most importantly, the variety of brands and beverages available in the system," said Brian Kelley, Keurig's president and chief executive officer, in a statement. "Adding Kraft's celebrated brands to the licensed Keurig family means Keurig consumers will be able to enjoy even more beverages they know and love with the quality and consistency they expect from their Keurig brewer."

Dino Bianco, Kraft's executive vice president and president of beverages, added in a statement: "At Kraft, we have made significant strides in rejuvenating our coffee business across all segments — including mainstream, premium and on-demand — by focusing on driving profitable growth for our brands and our customers. This agreement offers the opportunity for expanded distribution across multiple channels and is another example of our focus on long-term growth in action."

Initially, both Kraft and Keurig will handle manufacturing for the single-serve pods. Following a planned transition period, Keurig will become the exclusive manufacturer of Kraft-branded Keurig packs using coffee sourced, roasted and blended by Kraft.

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