Waterbury-based Keurig Green Mountain Inc. has added Kraft Foods to its list of marketing partners. Starting this fall, Kraft coffee will be sold in portion packs compatible with Keurig brewing systems.
Kraft coffee brands include Maxwell House, Gevalia, Yuban and McDonald’s McCafé. Keurig brewers started as single-serve machines; the product line will expand to pot-sized equipment this fall.
Financial terms of the agreement were not disclosed, according to financial reports. The deal is set to last multiple years and cover licensing, manufacturing and distribution in the U.S.
Kraft started selling unlicensed K-cup packs in 2012, from which then-Green Mountain Coffee Roasters collected no royalties.
Friday’s announcement marks a significant change in dynamics between the firms. Following a planned transition period to commence this fall, Keurig will take over as the exclusive manufacturer of Kraft-branded Keurig packs.
GMCR CEO Brian Kelley said in a press release that the addition of Kraft to Keurig’s portfolio of coffee brands will please customers by giving them more options.
“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,” Kelley said.
Kraft vice president Dino Bianco said the partnership with Keurig advances “significant strides” Kraft already has made toward rejuvenating its coffee business.
