Keurig expands partnership for Dunkin’ K-Cup Packs
New agreement will put branded K-Cups in retail outlets nationwide
Canton, Mass.-based Dunkin' Brands Group Inc., Orrville, Ohio-based The J.M. Smucker Co., and Waterbury, Vt.-based Keurig Green Mountain Inc. expanded their partnership by signing agreements for the manufacturing, marketing, distribution and sale of Dunkin' K-Cup packs at retailers nationwide in the United States, Canada and online.
Dunkin' K-Cup packs presently are available in Dunkin' Donuts restaurants in the United States. Keurig is the exclusive producer of Dunkin' K-Cup packs and will remain so with the expansion of the partnership. J.M. Smucker Co. currently manufactures and distributes Dunkin' Donuts-branded premium bagged coffee where groceries are sold under license from Dunkin' Donuts.
“This exciting new agreement with two trusted and long-standing partners, The J.M. Smucker Co. and Keurig, will make Dunkin' K-Cup packs available at thousands of additional retail outlets nationwide, as well as online, and will enable us to further tap into the growing consumer demand for single-serve at-home coffee,” said Dunkin' Brands Chairman and Chief Executive Officer Nigel Travis in a statement. “Not only will this increase the consumption of Dunkin' Donuts coffee, it will help us continue to build our brand relevance with new and existing customers, which we believe will, in turn, drive incremental visits to our restaurants.”
Under the new, multi-year agreement, The J.M. Smucker Co. will distribute and market Dunkin' K-Cup packs exclusively to grocery chains, mass merchandisers, club stores, drug stores, dollar stores and home improvement stores. Keurig will distribute and market Dunkin' K-Cup packs to specialty stores and office superstores. Dunkin' K-Cup packs will continue to be available in Dunkin' Donuts restaurants in the United States. The expanded retail program will launch in the middle of 2015 with five varieties of Dunkin' Donuts' signature coffee initially available in K-Cup packs: Original Blend, Dunkin' Decaf, French Vanilla, Hazelnut and Dunkin' Donuts Bakery Series Chocolate Glazed Donut. Beginning this spring, Dunkin' K-Cup packs also will be sold online at www.dunkindonuts.com, www.onlinestore.smucker.com, www.keurig.comand other online retailers.
“The wait is nearly over for the many Dunkin' Donuts coffee fans who have requested we add Dunkin' K-Cup packs to our at-home single-serve coffee offerings,” said Richard Smucker, chief executive officer of The J.M. Smucker Co., in a statement. “The expansion of our relationship with Dunkin' Brands and Keurig allows us to satisfy this consumer need by bringing Dunkin' K-Cup packs into new retail channels, including wherever groceries are sold. The addition of Dunkin' K-Cup packs will further strengthen our Smucker coffee portfolio as we work with our retail customers to continue to bring excitement and new growth opportunities to the coffee category.”
Brian Kelley, Keurig president and chief executive officer, added: “Expanded availability of Dunkin' K-Cup packs will make it possible for even more consumers to experience and enjoy this great-tasting, beloved coffee while at the same time building consumer awareness and passion for the Keurig system. Our unique ability to partner with Dunkin' Brands, J.M. Smucker and more than 60 other brands has helped Keurig, an innovative, technology-driven personal beverage system company, to revolutionize the at-home and away-from-home beverage experience, bringing more than 400 high-quality beverage varieties to Keurig consumers with the consistent simplicity and convenience they've come to expect from the brand.”
Terms of the respective agreements with J.M. Smucker Co., Keurig and Dunkin' Brands were not disclosed.
Concurrent with its expanded partnership with J.M. Smucker Co. and Keurig, Dunkin' Brands also announced details of a new franchisee profit-sharing program as part of a long-term deal under which Dunkin' Brands will equally share with qualified U.S. Dunkin' Donuts franchisees its net profits from the sale of its K-Cup packs and packaged coffee from outlets outside of its restaurants.
“When we introduced Dunkin' K-Cup packs as a retail item in our restaurants in 2011, we said we would only consider allowing this product to be sold at other retailers if we could do so in a way that benefited both us and our franchisees,” Travis said. “In keeping with that commitment, I am delighted to announce that we have been able to reach a profit-sharing agreement with our domestic Dunkin' Donuts franchisees that we believe will drive incremental, profitable growth for both Dunkin' Brands and our franchisees.”