Keurig Dr Pepper expands partnership with Lavazza

Dive Brief:

• Keurig Dr Pepper has expanded its ongoing partnership with Lavazza, the companies said in a statement.
• The update includes wider sales and distribution of Lavazza K-Cup pods by Keurig and the introduction of the company’s Canadian brand, Kicking Horse Coffee, to the K-Cup pod format.
• The revised partnership not only expands the reach of two premium coffees for Lavazza, but it gives consumers who use Keurig more brands to chose from — increasing its attractiveness for users.  

Dive Insight:

Keurig Dr Pepper has offered Lavazza on its popular brewing platform for a decade. But now the two beverage companies are building out that partnership in a way that will benefit both businesses.

Keurig Dr Pepper will continue to be the exclusive sourcing partner and manufacturer of premium Lavazza K-Cup pods. Under the revised agreement, it will add sales and distribution responsibilities in retail and e-commerce across the U.S. and Canada. Another change will be the incorporation of Kicking Horse Coffee into the Keurig platform, an addition that will give consumers another premium brand to choose from in a K-Cup pod.

Keurig, which introduced its first test model in 1995, has just under 40 million households using its coffee brewing system, according to its parent company.

The coffee maker has thrived since its founding, not only through innovation but by opening the platform up to other coffee brands — including Dunkin’, Starbucks and Folgers — that are not owned by Keurig. With consumers making more of their own coffee at home, and aiming to replicate the premium experience of a coffee shop when they do, the more choice people have, the more likely they are to turn to Keurig.

More Americans drink coffee each day (63%) than any other beverage, including water, according to the National Coffee Association. Additional data from Driveresearch noted that two-thirds of American coffee drinkers make the beverage daily at home, with 89% doing it at least once a week. 

“Having renowned, premium coffee brands Lavazza and now Kicking Horse Coffee as part of the K-Cup pod family underscores our ability to drive growth while providing consumers premium coffee brands available to enjoy at home,” Patrick Minogue, president of U.S. coffee for Keurig Dr Pepper.

Keurig, which has brand recognition topping 90%, posted its ninth straight year of market share gains in 2023, according to parent Keurig Dr Pepper. Currently, a third of all coffeemakers sold in the U.S. are Keurig or Keurig-compatible models.

For Lavazza and Kicking Horse, the deeper partnership gives it additional opportunities to reach a wider audience of coffee drinkers, said Hossam Ashraf, Lavazza’s North America president.