Tully's Coffee is an American specialty coffee manufacturing brand owned by Keurig Dr Pepper , which acquired Tully's brand and wholesale business in 2009.
102-812: Keurig ( / ˈ k j ʊər ɪ ɡ / ) is a beverage brewing system for home and commercial use. The American company Keurig Dr Pepper manufactures the machines. The main Keurig products are K-Cup pods, which are single-serve coffee containers ; other beverage pods; and the proprietary machines that use these pods to make beverages. Keurig beverage varieties include hot and cold coffees, teas, cocoas, dairy-based beverages, lemonades, cider, and fruit-based drinks. Keurig has over 400 varieties and over 60 brands of coffee and other beverages through its own and partnership-licensed brands. In addition to K-Cup pods, it includes Vue, K-Carafe, and K-Mug pods. The original single-serve brewer and coffee-pod manufacturing company, Keurig, Inc.,
204-683: A "Best Place to Work" in HR Magazine . Keurig Green Mountain operates in two business segments: domestic and Canada. The domestic segment produces and sells coffee, hot cocoa, teas and other beverages, to be prepared hot or cold, in Keurig pods; it also sells coffee in traditional packaging, including whole beans and ground coffee in bags, and ground coffee in fractional packs. It also sells patented Keurig single-cup brewing systems for use both at home and away from home. The Canadian business unit – Keurig Canada Inc. – sells Keurig brewers, and produces and sells coffees, teas, and other beverages in
306-545: A 10% stake in Green Mountain Coffee Roasters, valued at $ 1.25 billion, with an option to increase their stake to 16%, which was exercised in May 2014. The partnership was part of Coca-Cola's support of a cold beverage system developed by Keurig to allow customers to make Coca-Cola and other brand beverages at home. In January 2015, the company made a similar deal with Dr Pepper Snapple Group , but without
408-638: A 33-year-old Sanwa Bank employee, Kota Matsuda , personally appealed to O'Keefe to open a chain of high-quality coffee shops in Japan. Matsuda became the CEO of Tully's Coffee Japan, a joint venture between Tully's, Matsuda and several outside investors. Unlike its rival Starbucks, which chose to run its stores in Japan directly, Tully's expanded in Japan through franchising. Tully's sold a portfolio of intellectual property to TCJ in August 2005 for over $ 13 million, and
510-514: A Keurig coffee machine built into the door. In September 2015, Keurig launched a line of Campbell's Soup available in K-Cups. The Campbell's Fresh-Brewed Soup Kits come with a packet of noodles and a K-Cup soup pod. The product is available in two varieties: Homestyle Chicken Broth & Noodle, and Southwest Style Chicken Broth & Noodle. Also in September 2015, Keurig launched Keurig Kold,
612-543: A Massachusetts start-up called Keurig approached GMCR about developing a single-cup coffee brewing system, marking GMCR's first investment in Keurig. In 1996, GMCR invested further in Keurig, buying a 35% interest in the company. The following year, GMCR became the first roaster to offer coffee in a K-Cup pod for the Keurig Single-Cup Brewing System; in 1998 Keurig delivered its first brewing system, designed for office use. The launch of
714-575: A Stewardship Program to promote sustainability and sound environmental practices; in 1997 it pioneered the first biodegradable bag for bulk coffee purchases; and in 2006 it introduced the ecotainer, a to-go cup for hot beverages made entirely out of renewable materials. In 2005, Green Mountain was the first coffee company to support the United Nations ' Global Reporting Initiative mission to develop globally accepted sustainability reporting guidelines. In 2008 GMCR's board of directors added
816-593: A bonus of two vacation days as a "thank you" for their commitment to the company. Dempsey later backed out of the partnership and filed a lawsuit against his former partner and attorney Michael Avenatti . In September 2017, Tully's Coffee announced it would close 12 locations in the Puget Sound region that were located inside Boeing facilities, including the Everett and Renton assembly factories. They had originally opened in 2006 as part of an agreement between
918-450: A breakthrough product and a breakthrough business model. In 2002, Keurig sold 10,000 commercial brewers. Consumer demand for a home-use brewer version increased, but manufacturing a model small enough to fit on a kitchen counter and making them inexpensively enough to be affordable to consumers, took time. Office models were profitable because the profits came from the high-margin K-Cups, and one office might go through up to hundreds of those
1020-515: A brewer that creates a variety of cold beverages including soft drinks, functional beverages, and sparkling waters. The machine brews beverages from The Coca-Cola Company (e.g. Coca-Cola , Diet Coke , Coke Zero , Sprite , Fanta ) and the Dr Pepper Snapple Group (e.g. Dr Pepper , Canada Dry ) and Keurig's line of flavored sparkling and non-sparkling waters and teas, sports drinks, and soda-fountain drinks. In December 2015, it
1122-783: A business unit under the Keurig Dr Pepper parent company. The SEC began to look into how then-named Green Mountain Coffee accounted for revenue in 2010. Shortly afterward, a class action lawsuit began regarding how inventory was handled, with the amended lawsuit being filed April 30, 2012. Plaintiffs stated Green Mountain Coffee had maintained demand was high enough that no excess inventory had been produced even while production continued to increase. Confidential Green Mountain Coffee employees had stated inventory had been moved between locations without documentation in order to overstate inventory counts and inflate earnings. In June 2018,
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#17327976499861224-530: A cold beverage system to be developed by Keurig that allows customers to make Coca-Cola and other brand soft drinks at home. In January 2015, the company made a similar deal with Dr Pepper Snapple Group , but without a stockholder stake. In early March 2014, Green Mountain Coffee Roasters shareholders voted to change its name to Keurig Green Mountain to reflect its business of selling Keurig coffee makers. Its stock-market symbol remained "GMCR". In
1326-416: A day. By 2004, Keurig had a prototype ready for home use, but so did large corporate competitors like Salton , Sara Lee , and Procter & Gamble , which introduced their single-serve brewers and pods. Keurig capitalized on the increased awareness of the concept and sent representatives into stores to do live demonstrations of its B100 home brewer and give out free samples. Keurig and K-Cups quickly became
1428-632: A deal worth $ 18.7 billion, creating Keurig Dr Pepper , a publicly traded conglomerate which is the third largest beverage company in North America. Keurig founders John Sylvan and Peter Dragone had been college roommates at Colby College in Maine in the late 1970s. In the early 1990s, Sylvan, a tinkerer, had quit his tech job in Massachusetts and wanted to avoid the issues of brewed coffee becoming bitter, dense and stale with time by creating
1530-486: A deal worth $ 18.7 billion. Legally, Dr Pepper Snapple Group was the surviving company; it remained publicly traded and changed its name to Keurig Dr Pepper . This created the third largest beverage company in North America. On July 10, shares in Keurig Dr Pepper (KDP) began trading on the New York Stock Exchange . Its stock switched to NASDAQ in 2020. Dr Pepper Snapple Group continues to operate as
1632-500: A discharge nozzle. Grounds contained inside the K-Cup pod are in a paper filter . Hot water is forced under pressure through the K-Cup pod, passing through the grounds and through the filter. A brewing temperature of 192 °F (89 °C) is the default setting, with some models permitting users to adjust the temperature downward by five degrees. The key original patent on the K-Cup expired in 2012. Keurig has later patents, including on
1734-402: A foil lid, optional filter paper , and an optional shim . Each K-Cup pod is filled with coffee grounds, tea leaves, cocoa mix, fruit powder, or other contents, and is nitrogen flushed, sealed for freshness, and impermeable to oxygen, light, and moisture. The machines brew the K-Cup beverage by piercing the aluminum foil seal with a spray nozzle, while piercing the bottom of the plastic pod with
1836-659: A full-pot brewer, the Keurig Bolt, mainly used in offices; it was discontinued in December 2016. In November 2013, Keurig opened a retail store inside the Burlington Mall in Burlington , Massachusetts . The store features the full line of Keurig machines and accessories and nearly 200 varieties of K-Cups for creating individualized 3-, 6-, or 12-pod boxes. In February 2014, The Coca-Cola Company purchased
1938-499: A highly technological brewing-machine manufacturer and a nationwide high-end coffee provider into one company and created an effective " razor/razorblade " model that allowed for explosive growth and high profits. By 2008, K-Cup pods became available for sale in supermarkets across the U.S. Coffee pod machine sales overall multiplied more than six-fold over the six years from 2008 to 2014. In 2010, Keurig and K-Cup sales topped $ 1.2 billion. The high-margin profits from K-Cup pods are
2040-427: A line of Campbell's Soup available in K-Cups. The kits come with a packet of noodles and a K-Cup pod of soup, and the varieties include Chicken Noodle and Southwest Style Chicken Noodle. Also in September 2015, Keurig launched Keurig Kold, a brewer which created a variety of cold beverages including soft drinks, functional beverages, and sparkling waters. The machine brewed beverages from The Coca-Cola Company and
2142-415: A lot of pretty demanding technical requirements in terms of being able to withstand certain amount of temperature and to have a certain kind of rigidity, and provide the right kinds of moisture barriers and oxygen barriers and the like. So it isn't the simplest challenge." In 2015, Keurig Green Mountain's chief sustainability officer stated that every new K-Cup spin-off product introduced since 2006 – including
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#17327976499862244-579: A new CEO. On July 9, 2018, Keurig Green Mountain acquired the Dr Pepper Snapple Group in an $ 18.7-billion deal. The combined company was renamed Keurig Dr Pepper , and traded publicly again on the New York Stock Exchange under the ticker "KDP" until 2020 when it switched to Nasdaq while retaining the same ticker. Shareholders of Dr Pepper Snapple Group own 13% of the combined company, with Keurig shareholder Mondelez International owning 13% to 14% of that fraction. JAB Holdings owns
2346-633: A partnership with for selling K-cups include the following: Keurig was named Single Serve Coffee Maker Brand of the Year for four consecutive years from 2012 to 2015 by the Harris Poll EquiTrend Study. Some of Keurig's additional awards since 2012 have included: In the 2010s, beginning primarily with a 2010 article in The New York Times , Keurig has been publicly criticized by environmental advocates and journalists for
2448-635: A priority for the company is ensuring that 100% of K-Cup pods are recyclable by 2020. In August 2014, the Canadian chain OfficeMax Grand & Toy partnered with the New Jersey company TerraCycle to launch a K-Cup recycling program for businesses in Canada, using a recycling box purchased by the businesses and shipped to TerraCycle for recycling when full. In February 2015, TerraCycle launched
2550-451: A recyclable pod which brews large travel mug–sized portions. In mid 2015 Keurig debuted the K200, a smaller Keurig 2.0 model that can brew single cups or four-cup carafes and comes in a variety of colors. General Electric announced that its new Café French Door refrigerator, due out in late 2015, would have a Keurig coffee machine built into the door. In September 2015, Keurig launched
2652-449: A result. Fiscal 2006 losses amounted to $ 9.7 million. Tully sold its North American wholesale coffee-bean distribution business, brand (which it licensed back for $ 1/year in perpetuity), and roasting operation to Green Mountain Coffee Roasters in 2009, earning $ 40.3 million in the deal, allowing the company to pay off 100% of its debt, including trade debt, make a cash distribution to shareholders, and maintain substantial cash reserves for
2754-501: A retail market test. The company became one of the largest suppliers of double-certified fair-trade and organic coffee in the world. As American tastes in coffee changed, sales of Green Mountain roasted coffee beans grew. In 1991, GMCR had seven retail outlets, 1,000 wholesale clients, $ 11 million in sales, and $ 200,000 in profits. By 1993, the company had 2,400 wholesale accounts and sales of about $ 10 million, and Green Mountain Coffee Roasters, Inc. started trading publicly , under
2856-542: A similar deal whereby Starbucks would sell its coffee and tea in Keurig single-serve pods and would, in return sell Keurig machines in their stores as part of the deal. The company introduced the Keurig Vue brewer, paired with new Vue pods, in February 2012, seven months before the key patent on the K-Cup expired in September 2012. The Vue system was announced as having customizable features so consumers had control over
2958-556: A similar deal whereby the latter would sell its coffee and tea in Keurig single-serve pods, and would in return sell Keurig machines in their stores as part of the deal. In 2008 Dr Pepper Snapple group announced the acquisition of a very popular Mexican carbonated beverage company, Manantiales Peñafiel (Peñafiel Springs in English), renaming Manantiales Peñafiel in Mexico as Grupo Peñafiel (Peñafiel Group in English). Squirt (soft drink)
3060-470: A similar program for residential use in the U.S.: consumers purchase a Zero Waste Box which can hold 600 capsules, and when full, the box, which has a pre-paid UPS label, is shipped to TerraCycle for recycling. In 2015, Egg Production created a Cloverfield -like short video on YouTube entitled "Kill The K Cup" to promote awareness of the waste impact of K Cup, starting the hashtag #KillTheKCup, and reporting that there were enough K pods sold in 2014 to circle
3162-555: A single-serving pod of coffee grounds and a machine that would brew it. Living in Greater Boston , he went through extensive trial and error trying to create a pod and a brewing machine. By 1992, to help create a business plan, he brought in Dragone, then working as director of finance for Chiquita , as a partner. They founded the company in 1992, calling it Keurig; Sylvan later said that the name came from his having "looked up
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3264-535: A social and environmental responsibility committee overseeing the company's social responsibilities. It also established a vice president for corporate social responsibility who reports directly to the CEO. In addition to its environmental oversight, the company's Sustainability Committee focuses on areas including the financial and environmental viability, health, and resiliency of its coffee-growing and manufacturing supply chains; community outreach; and corporate and employee social responsibility and awareness. GMCR
3366-503: A social and environmental responsibility committee. During that time period GMCR also established a vice president for environmental affairs reporting directly to the CEO. As of 2015, Keurig Green Mountain has a Chief Sustainability Officer. The company offsets 100% of its direct greenhouse gases , and prioritizes waste reduction and responsible energy use, and sustainability over the life-cycle of its products. In addition to other awards and recognition for sustainable practices, GMCR
3468-406: A stockholder stake. The cold beverage system Keurig Kold, launched in September 2015. In early March 2014, shareholders of Keurig's parent company, Green Mountain Coffee Roasters, voted to change its name to Keurig Green Mountain to reflect its business of selling Keurig coffee makers. Keurig Green Mountain's stock-market symbol remained "GMCR". In the fall of 2014, Keurig Green Mountain introduced
3570-510: A variety of packaging formats, including Keurig pods, as well as coffee in traditional packaging such as bags, cans, and fractional packs. It sells under a variety of brands, including Van Houtte, Brulerie St. Denis, Brulerie Mont-Royal, and Orient Express, and its licensed Bigelow and Wolfgang Puck brands. Through its owned brands and through its partnerships and licensing, Keurig Green Mountain's K-Cup pods offer more than 400 varieties of coffee, tea, and other beverages from 60 brands, including
3672-438: A variety of regionally known coffee brands that catered to various flavor preferences. The first of these was Green Mountain Coffee Roasters, and additional licensees for the K-Cup line included Tully's Coffee , Timothy's World Coffee , Diedrich Coffee , and Van Houtte , although Green Mountain was the dominant brand. Keurig also partnered with a variety of established national U.S. coffee brands for K-Cup varieties, and in 2000,
3774-567: Is recyclable if disassembled into paper, plastic, and metal components. In its 2014 Sustainability Report, released in February 2015, Keurig Green Mountain re-affirmed that a priority for the company is ensuring that 100% of K-Cup pods are recyclable by 2020. From its inception, and in tandem with its environmentally conscious outlook, Green Mountain has had a culture grounded in social responsibility, community mindedness, philanthropy, and respect for employees. Among other recognition and awards for its corporate social responsibility (CSR), GMCR
3876-575: Is used for over 760 Tully's coffee houses in Japan (as of April 2022). Tully's coffee shops were well known for once following an expansion strategy of opening stores adjacent to those of the considerably larger coffee chain Starbucks , also based in Seattle. Tully's opened its first store in Kent, Washington in September 1992. The founder of Tully's Coffee, Tom "Tully" O'Keefe, who retired from
3978-680: The United States Judicial Panel on Multidistrict Litigation consolidated the litigation into one docket in the Southern District of New York , where Judge Vernon S. Broderick heard the consolidated case. The case had 46 plaintiffs, consisting of indirect purchasers, direct purchasers, and two competitors. Common allegations of the multidistrict litigation include claims that Keurig improperly acquired competitors, entered into exclusionary agreements with suppliers and distributors to prevent competitors from entering
4080-496: The 2018 merger with Dr Pepper Snapple, Gamgort became CEO of Keurig Dr Pepper, and Larry Young, who had been president and CEO of Dr Pepper Snapple, retired from those positions and joined the new company's board of directors. In April 2024, Tim Cofer became the CEO of Keurig Dr Pepper, while Robert Gamgort remained in the position of Executive Chairman. Tully%27s Coffee Tully's branded coffee continues to be sold by Keurig in its K-Cup format and as bagged ground coffee. At
4182-483: The Cambridge-based fund MDT Advisers contributed $ 1,000,000. In 1995, Larry Kernan, a principal at MDT Advisers, became Chairman of Keurig, a position he retained through 2002. Sylvan did not work well with the new investors, and in 1997, he was forced out, selling his stake in the company for $ 50,000. Dragone left a few months later but decided to retain his stake. In 1997, Green Mountain Coffee Roasters became
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4284-627: The Dr Pepper Snapple Group, in addition to Keurig's own line of flavored sparkling and non-sparkling waters and teas, sports drinks, and soda-fountain drinks. The company's primary competitor in this market area was SodaStream . In June 2016 Keurig announced it was discontinuing the machine and offered refunds to purchasers. On December 7, 2015, an investor group led by private-equity firm JAB Holding Company —an investment firm dealing in high-end consumer goods, whose holdings include Peet's Coffee & Tea —announced its intent to acquire Keurig Green Mountain for $ 13.9 billion. The minority investors in
4386-494: The FomCafe cooperative's quality-control training program, which helps farmers earn higher profits for coffee. In 2002, GMCR was the first corporate investor of the non-profit micro-loan organization Root Capital, and through it Green Mountain has provided millions of dollars in loans to cash-strapped coffee farmers. In 2002 Green Mountain also formed a joint alliance with the U.S. Agency for International Development, to improve
4488-754: The JAB takeover since the sale of its stock holding would provide Coca-Cola with a substantial financial benefit. The acquisition closed in March 2016. Keurig Green Mountain became a privately held company, and remained an independent entity run by its existing management team, retaining its head office in Waterbury, Vermont. In a statement, JAB's chairman Bart Becht said that "Keurig Green Mountain will operate as an independent entity.... The company’s management team...will continue to run Keurig." In July 2018, Keurig Green Mountain acquired Dr Pepper Snapple Group in
4590-535: The Japanese tea maker acquired TCJ Ito En in 2006. In August 2007, plans for an IPO were placed on hold by the company, citing a "volatile market." This decision was made right after the company was advised by its bankers to refrain from going forward with the IPO due to a tremendously declining stock market. The company pursued alternative sources of capital and sought all strategic investment or sale opportunities as
4692-519: The KGM purchase included shareholders in the global coffee and tea company Jacobs Douwe Egberts , which owns Tassimo . The agreement was unanimously approved by Keurig Green Mountain's board of directors. The selling price, at $ 92 per share, represented a 77.9% premium over the closing price of Keurig Green Mountain (stock ticker "GMCR") on December 5, 2015. The Coca-Cola Company, Keurig Green Mountain's largest shareholder at 17.4%, announced its support for
4794-433: The Keurig 2.0 brewer, with technology to prevent old or unlicensed pods from being used in the brewer. The digital lock-out sparked hacking attempts and anti-trust lawsuits. The Keurig 2.0 K-Cup pods come in 400 varieties from 60 brands, and as of 2015, the 2.0 K-Cup, K-Carafe, and K-Mug pods encompass 500 varieties from 75 brands. The 2.0 brewer also has the capacity to brew full carafes in three settings, from 2 to 5 cups, via
4896-475: The Keurig Vue brewer, paired with its new Vue packs, in February 2012, seven months before patents on the K-Cup expired in September 2012. The Vue system was announced as having customizable features so consumers had control over the strength, size, and temperature of their beverages, and the Vue pack is made of recyclable #5 plastic . In November 2012, GMCR released its espresso , cappuccino , and latte brewer,
4998-517: The Rivo, co-developed with the Italian coffee company Lavazza . In the fall of 2013, the company released a full-pot brewer, the Keurig Bolt, for use mainly in offices. In February 2014, The Coca-Cola Company purchased a 10% stake in the company, valued at $ 1.25 billion, with an option to increase their stake to 16%, which was exercised in May 2014. The partnership was part of Coca-Cola's support of
5100-649: The U.S. and Asia. It operated stores in the Greater Puget Sound area of Washington , San Francisco , Los Angeles , Idaho , Arizona , California and licensed its brand for use in South Korea and Japan. It had also opened stores in Singapore , Metro Manila , Beijing and Stockholm, Sweden . Tully's opened its first Japanese outlet in Ginza , Tokyo , in 1997. Tully's opened in Japan after
5202-400: The U.S. and Canada. The recall was due to burn injuries reported from water overheating and spewing out of some of the machines, particularly if used to brew more than two cups in quick succession. By the first quarter of 2015, Keurig sales had dropped 23 percent year over year partly due to unease over Keurig 2.0. In response, Keurig announced they would revive the reusable My K-Cup product by
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#17327976499865304-477: The Vue, Bolt, K-Carafe, and K-Mug pods – is recyclable if disassembled into paper, plastic, and metal components. James Hamblin, writing in The Atlantic , argues that the level of conscientiousness required to disassemble the cups is somewhat of a paradox to expect from people using a push-button brewing process. In its 2014 Sustainability Report, released in February 2015, Keurig Green Mountain re-affirmed that
5406-461: The billions of non-recyclable and non-biodegradable K-Cups consumers purchase and dispose of every year, which end up in landfills. Some competing single-cup brands have single-serve pods that are recyclable, reusable, compostable, or biodegradable. The cup portion of the K-Cup is made of #7 plastic , and although according to the company it is BPA -free, safe, and meets or exceeds applicable FDA standards, it cannot be recycled in most places. Even in
5508-405: The brewer. Another plaintiff, TreeHouse Foods , claimed to be able to produce its own pods that would work in the 2.0 system. A Canadian company, Mother Parkers Tea & Coffee, announced a capsule which would be compatible with the Keurig 2.0. In December 2014, the company recalled about 7 million of its Keurig Mini Plus Brewing Systems manufactured between December 2009 and July 2014 and sold in
5610-531: The bulk of the company's income; for the fiscal year 2014, Keurig generated $ 822.3 million in sales from brewers and accessories, while the pods had $ 3.6 billion in sales. In February 2011, Green Mountain announced an agreement with Dunkin' Donuts to make Dunkin’ Donuts coffee available in single-serve K-Cup pods for use with Keurig Single-Cup Brewers. In addition, participating Dunkin’ Donuts restaurants occasionally offer Keurig Single-Cup Brewers for sale. In March 2011, Green Mountain Coffee and Starbucks announced
5712-587: The company acquired Frontier Organic Coffee , and in 2002, it signed an agreement to sell fair trade coffee under the Newman's Own Organics label. In late 2005, GMCR reached a deal to sell its Newman's Own Organics Blend coffee in more than 600 McDonald's restaurants in New England and Upstate New York . In 2006, Green Mountain had a 43% ownership of Keurig, Inc, which it accomplished by successively investing in and acquiring increasing percentage ownership
5814-428: The company also branched out the beverage offerings in its K-Cup pods to include hot chocolate and a variety of teas. The brewing machines were large and hooked up to an office's water supply; Keurig sold them to local coffee distributors, who installed them in offices for little or no money, relying on the K-Cups for profits . Keurig is credited with creating a new category with their cup-at-a-time pod-style brewing,
5916-438: The company between 1993 and 2003, helping to complete its full acquisition of the single-cup brewing systems manufacturer. The subsequent acquisition allowed Green Mountain to adopt a multi-brand portfolio, and multichannel distribution of brands in a variety of settings. It also fuelled substantial revenue growth, and allowed GMCR to transition fully from deriving 95% of its revenue from its low-margin wholesale coffee business in
6018-426: The company for the billions of non-recyclable and non-biodegradable K-Cups consumers purchase and dispose of every year, and for the dichotomy between the company's historic environmentally conscious image and the impact of K-Cups on the environment. In 2015, the company's chief sustainability officer stated that every new K-Cup spin-off product introduced since 2006 – including the Vue, Bolt, and K-Carafe cups –
6120-511: The company in 2010, planned to rival the quickly expanding Starbucks coffee . Tully's quickly developed into a strong regional specialty coffee retailer concentrated in Puget Sound, where coffee loyalty is so deep there is one coffee shop for every 4,000 people. In 2006, Tully's made its first net profit. Tully's focus was no longer on competing against Starbucks but on serving hand-crafted coffee in its local Seattle area retail coffee shops. The company had franchisees and grocery chain coffee shops in
6222-583: The company introduced its first organic coffee in a retail market test; in 1989 it formed an Employee Environmental Committee, and began a recycling program; and in 1990 it introduced Rain Forest Nut coffee to sponsor rainforest preservation, donating 10% of the product's profits to Conservation International and the Rainforest Alliance , and it introduced the first earth-friendly, oxygen-whitened, dioxin-free coffee filters. In 1992 it formed
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#17327976499866324-649: The company signed an exclusive deal with American Skiing Company , offered its first corporate gifts catalogue, sold its certified organic coffee in ExxonMobil 's national and international On the Run convenience stores, and expanded its supermarket distribution to 500 stores. In 1999, it expanded its export market, including to Great Britain . In 2000, Green Mountain reached an agreement to promote and sell fair trade coffee , committing to making at least 3% of its sales fair trade —certified by TransFair USA . In 2001,
6426-689: The company to announce in May 2015 that it was bringing back the My K-Cup and making it compatible with the 2.0 brewers. In 2011, GMCR launched the Grounds to Grow On program, in which office customers purchase recovery bins for used K-Cups, which are shipped to Keurig's disposal partner, which composts the coffee grounds and sends the pods to be incinerated in a waste-to-energy power plant . Critics point out that incineration produces airborne pollutants. Regarding potential recyclability, GMCR's vice president of sustainability stated in 2013 that "The system has
6528-756: The company within two years of his original purchase, but it took four years to turn a profit. To grow the business, Stiller sold the coffee to high-end restaurants and gas stations alike, and gave out free samples as he could not afford advertising. In 1986, he launched a mail-order business which he advertised in gourmet magazines, and acquired his first supermarket-chain customer, Kings . Stiller adopted technology to track customers' orders; to regulate roasting-heat levels appropriate to each bag; and to track distribution, manufacturing, sales, and personnel (adopting PeopleSoft in 1997). By 1983, employees composted used coffee grounds at its retail stores, and by 1986, Green Mountain introduced its first organic coffee in
6630-573: The dominant brand of home brewers and single-serve pods. In 2006, the publicly traded Vermont-based specialty-coffee company Green Mountain Coffee Roasters (GMCR) – which had successively invested in and acquired increasing percentage ownership of Keurig in 1993, 1996, and 2003, by which time it had a 43% ownership – completed its full acquisition of Keurig. Green Mountain also acquired the four additional Keurig licensees, Tully's Coffee, Timothy's World Coffee, Diedrich Coffee, and Van Houtte, in 2009 and 2010. The joining of Keurig and Green Mountain combined
6732-483: The early 1990s, the company has annually sent groups of employees on trips to coffee farms in Latin America, to gain first-hand experience in the lives of coffee growers. GMCR has prioritized initiatives to alleviate poverty and hunger in coffee-growing communities. These include Coffee Kids, an international non-profit which improves the lives of children and families in remote coffee-growing villages; and
6834-487: The earth 10.5 times. In early 2014, following the announcement of its Keurig 2.0 machines engineered to lock out unlicensed pods, seven competitors and a number of purchasers filed lawsuits in Canada and in various United States federal courts. The complaints contain numerous allegations of anti-competitive actions designed to drive competitors out of Keurig's market. To handle the U.S. anti-competitive lawsuits, in June 2014
6936-577: The end of the year. In November 2017, Keurig posted on its Twitter account that it had ended its advertisements with Sean Hannity 's program on Fox News , in reaction to Hannity's defense of Senate candidate Roy Moore , who had been accused of sexual misconduct against teenage girls. In response, videos of Hannity's fans destroying their Keurig machines proliferated on the Internet, with automated Russian accounts supporting Hannity's position on Twitter. In an internal email, Keurig CEO Bob Gamgort wrote that
7038-625: The expansion of its retail business. Tully's retained all retail rights for North America, and all wholesale and retail rights for the balance of the world, excluding Japan. In 2010, Tully's Coffee International and DK Retail Co., Ltd. entered into a Master Licensing Agreement to develop up to 100 retail stores in South Korea. Founder and Chairman Tom T. O'Keefe retired in 2010. The Tully's Coffee board and management filed for Chapter 11 bankruptcy in October 2012, citing low cash reserves and
7140-459: The fall of 2014, Keurig Green Mountain introduced the Keurig 2.0 brewer, with technology to prevent old or unlicensed pods being used in the brewer. The digital lock-out sparked hacking attempts and antitrust lawsuits. The 2.0 brewer also has the capacity to brew full carafes in addition to single servings, via the use of the new K-Carafe portion pack. In March 2015, it launched the K-Mug pod,
7242-436: The few locations in Canada where #7 plastic is recycled, the small size of the pods means they can fall through sorting grates. In late 2005, Green Mountain and Keurig launched the My K-Cup reusable and refillable pod, which could be filled with any brand of coffee. The product was discontinued in August 2014 with the launch of the Keurig 2.0 brewing system, and the 2.0 did not accept the My K-Cup pods. Consumer backlash prompted
7344-650: The filtration cartridge used in K-Cups, and has also launched a number of new pods since the beginning of 2012. Keurig sells many brewing system models, for household and commercial use. Licensed models from Breville , Cuisinart , and Mr. Coffee , were introduced in 2010. Its brewing systems for home use include single-cup brewers, and brewers that brew both single-cups and carafes. Keurig also sells commercial brewing models for offices and commercial venues. Through its owned brands and through its partnerships and licensing, as of 2015 Keurig's K-Cups and other pods offer more than 400 beverage varieties from 60 brands, including
7446-596: The first K-Cups with Green Mountain Coffee helped GMCR begin to further compete with Starbucks by allowing people to brew their own single servings of premium coffee. Also in 1997, a deal with Poland Spring opened the office-worker market by distributing Green Mountain Coffee to thousands of offices in the Northeast . In 1998, GMCR closed its 12 retail shops in favor of the burgeoning direct-mail and online market, its growing distributions to business offices and other national venues, and its wholesale market. That year,
7548-553: The first roaster to offer its coffee in the Keurig "K-Cup" pod for the newly market-ready Keurig Single-Cup Brewing System, and in 1998, Keurig delivered its first brewing system, the B2000, designed for offices. Distribution began in New York and New England. The target market at that time was still office use, and Keurig hoped to capture some of Starbucks ' market. To satisfy brand loyalty and individual tastes, Keurig found and enlisted
7650-415: The general public in 2019. In December 2021 Keurig announced it was discontinuing the platform and offered refunds for the machines to purchasers. The company's flagship products, Keurig K-Cup brewing systems, are designed to brew a single cup of coffee , tea , hot chocolate , or other hot beverage. The grounds are in a single-serve coffee container , called a "K-Cup" pod, consisting of a plastic cup ,
7752-468: The high-margin sales of its many varieties of single-serve K-Cup pods. In March 2014, GMCR changed its name to Keurig Green Mountain. A publicly traded company from 1993 through 2015, Keurig Green Mountain was acquired by a group of investors led by JAB Holding Company in March 2016 for $ 13.9 billion in cash. Keurig Green Mountain became a privately held company for two years, and was an independent entity run by its pre-existing management team and
7854-601: The large inventory with a single vendor, M. Block and Sons, Inc. Most analysts felt that the company practices were sound. The SEC ended the probe in October 2014, and brought no enforcement action against Green Mountain or its employees. In February 2011, Green Mountain announced an agreement with Dunkin' Donuts to make Dunkin’ Donuts coffee available in single-serve K-Cup pods for use with Keurig Single-Cup Brewers. In addition, participating Dunkin’ Donuts restaurants on occasion offer Keurig Single-Cup Brewers for sale. In March 2011, Green Mountain Coffee and Starbucks announced
7956-713: The late 1990s (approximately $ 65 million), to deriving 95% of its revenue from high-margin sales of K-Cups as of 2014 (more than $ 4.3 billion). Green Mountain also acquired the four additional Keurig licensees in 2009 and 2010: On September 28, 2010, GMCR's stock rose to what was then an all-time high; however, the company disclosed after the markets closed that the Securities and Exchange Commission (SEC) had requested documents and data related to an inquiry into how it accounted for revenue. The company announced that U.S. regulators had inquired into some of Green Mountain's accounting practices, including revenue recognition , and
8058-611: The livelihoods of those in impoverished coffee-growing regions. Internally, GMCR has cultivated and maintained a flat corporate culture , where employee buy-in, enthusiasm and vision, collaboration, and input is important. The company offers employees continuous training and development opportunities; tuition for outside education; profit-sharing; financial education; and continuous career-advancement support. Employees are paid for up to 52 hours of volunteer work in their community per year. GMCR has been on Forbes ' list of Best Small Companies five times, and has been recognized as
8160-413: The market, engaged in unwarranted patent-infringement litigation, and unfairly introduced a product redesign that locks out non–Keurig branded cups. The introduction of the Keurig 2.0 brewer also sparked a number of hacks and workarounds by competitors and consumers in 2014. Rogers Family Coffee, one of the plaintiffs in the anti-trust lawsuits, created a "Freedom Clip" allowing unauthorized pods to work in
8262-558: The merger of Keurig Green Mountain and Dr Pepper Snapple Group (formerly Dr. Pepper/7up Inc. ), Keurig Dr Pepper offers over 125 hot and cold beverages. The company's Canadian business unit subsidiary operates as Keurig Dr Pepper Canada (formerly Canada Dry Motts). The company's east-coast division manufactures Keurig brewing systems; sources, produces, and sells coffee , hot cocoa , teas , and other beverages under various brands for its Keurig machines; and sells coffee beans and ground coffee in bags and fractional packs. As of 2018,
8364-576: The need to renegotiate leases with landlords. At the time of the filing, Tully's had recently closed or was about to close 17 unprofitable company-owned stores. Global Baristas, an investment group led by actor Patrick Dempsey had the highest bid of US$ 9.15 million to buy Tully's at a bankruptcy auction on January 3, 2013. U.S. Bankruptcy Court Judge Karen Overstreet subsequently approved the sale to Global Baristas, rejecting objections from Starbucks and other prospective buyers. The deal became final on June 30, with all employees keeping their jobs and getting
8466-453: The newly merged conglomerate also sells sodas, juices, and other soft drinks via its Dr Pepper Snapple division based in Texas . Green Mountain Coffee Roasters (GMCR) was established in 1981. After regional and national expansion in the late 1980s, and an IPO in 1993, the company completed its acquisition of the brewing-machine manufacturer Keurig, Inc. in 2006, enabling rapid growth through
8568-463: The remaining 73-74%. In 2021, Keurig Dr Pepper opened its second headquarters in Frisco, Texas . Since April 2024, the CEO of Keurig Dr Pepper has been Tim Cofer. Green Mountain Coffee Roasters (GMCR) began when entrepreneur Bob Stiller was near a Vermont ski resort, where he drank a cup of coffee that he enjoyed and looked for its source. In 1981, he and a partner bought a two-thirds stake in
8670-521: The small speciality coffee roasting company in Waitsfield, Vermont , that produced the roasted beans. The store and cafe sold beans, grounds, and coffee to the public and a few restaurants. Stiller dedicated himself to coffee-roasting , using arabica coffee beans. By 1982, the company had around 30 employees, and moved its production facilities to Waterbury, Vermont . Stiller bought out his two partners for $ 100,000 and became sole proprietor of
8772-414: The strength, size, and temperature of their beverages, and the Vue pod is made of recyclable #5 plastic. The Vue brewer was discontinued in 2014, although Keurig still sells the Vue pods. In November 2012, GMCR released its espresso, cappuccino, and latte brewer, the Rivo, co-developed with the Italian coffee company Lavazza ; it was discontinued in December 2016. In the fall of 2013, the company released
8874-488: The then-named Keurig Green Mountain, Inc. agreed to a $ 36.5 million dollar settlement. GMCR began to embrace an environmental ethos within two years of its founding, and environmentalism and sustainability were important policies for which Green Mountain became well known. Among other initiatives within Green Mountain's first decade, in 1983 employees began composting used coffee grounds at its retail stores; in 1986
8976-552: The ticker "GMCR". The company expanded its retail locations, food-service distribution, mail-order business, and wholesale business. In 1994, Green Mountain began exporting to Canada and Taiwan. In the late 1990s, it broadened its national supermarket chain distribution, gas-station and convenience-store distribution throughout the northeast, and it sold its product on airlines and Amtrak , specialty coffee stores, and venues such as LL Bean , Weight Watchers International , and Staples . In 1993, three engineering entrepreneurs from
9078-668: The time of the Keurig wholesale acquisition, the " Tully's " name and retail-store rights were retained by the now-defunct original retailer and wholesaler chain of coffee shops based in Seattle , Washington , which had been originated by Tom "Tully" O'Keefe in 1992. Its stores served specialty coffees, espresso, baked goods, pastries, and coffee-related supplies. The U.S. chain permanently closed in September 2018. The coffee-shop chain also has overseas licensing agreements in Japan , which since 2006 have been owned by Ito En , Inc. The brand name
9180-799: The top ten best-selling coffee brands in the U.S. Founder Bob Stiller was president and CEO of the company from its inception in 1981 until 2007, when he stepped down but remained chairman until May 2012. Lawrence J. Blanford became Green Mountain's president and CEO in 2007. Brian Kelley, previously chief product supply officer of Coca-Cola Refreshments , became the company's president and CEO in December 2012. In March 2016, JAB Holding Company and other investors acquired Keurig Green Mountain. Robert Gamgort, previously CEO of Pinnacle Foods , took over as KGM's new CEO in May 2016. The pre-existing management team, with Gamgort as its new CEO, continued to run Keurig Green Mountain as an independent entity, following its acquisition by JAB Holding Company. Following
9282-446: The top ten best-selling coffee brands in the U.S. The beverages include coffees, teas, hot chocolates and cocoas, dairy-based beverages, lemonades, cider, and fruit-based drinks. Keurig also offers Brew Over Ice pods for cold versions of teas, fruit drinks, and coffees. As of 2024, brands owned by Keurig Dr Pepper for use in its K-Cups and sometimes other coffee products include the following: As of 2024, brands that Keurig Dr Pepper has
9384-442: The two companies. On March 8, 2018, Tully's announced that it was closing its remaining stores temporarily due to a lack of coffee. Later that month, many Tully's locations remained closed with eviction notices posted by landlords indicating the lack of payment. In April 2018, Tully's coffee was sued by Daytona International Speedway . Tully's US coffeehouse business was officially closed when Keurig and Global Baristas entered
9486-538: The use of the new K-Carafe pod. In March 2015, Keurig launched the K-Mug pod, a recyclable pod that brews large travel mug–sized portions. The K-Mug pods, for use in the Keurig 2.0 brewing system, brew 12-, 14-, and 16-ounce cups, and the plastic is recyclable #5 polypropylene plastic . In mid-2015, Keurig debuted the K200, a smaller Keurig 2.0 model that can brew single cups or four-cup carafes and comes in various colors. General Electric announced that its new Café French Door refrigerator, due out in late 2015, will have
9588-601: The way Keurig handled the situation was "highly unusual" and gave the unintended impression that the company had taken sides. Gamgort also announced an overhaul of Keurig's communications policies. Keurig Dr Pepper Keurig Dr Pepper Inc. ( / ˈ k j ʊər ɪ ɡ / ), formerly Green Mountain Coffee Roasters (1981–2014) and Keurig Green Mountain (2014–2018), is a publicly traded American beverage and coffeemaker conglomerate with headquarters in Burlington, Massachusetts , and Frisco, Texas . Formed in July 2018, with
9690-556: The word excellence in Dutch". The prototype brewing machines were also a work in progress and unreliable, and the company needed funds for development. That year, they approached what was then Green Mountain Coffee Roasters , and the specialty coffee company first invested in Keurig at that time. Keurig needed sizeable venture capital ; and after pitching to numerous potential investors, the three partners finally obtained $ 50,000 from Minneapolis -based investor Food Fund in 1994, and later
9792-484: Was a pioneer in the Fair Trade movement in 2000, guaranteeing farmers a steady minimum price far above market value. Since 2010 Green Mountain has been the largest purchaser of Fair Trade coffee in the world. In addition, the company was from its beginnings known for its long-term relationships and fair dealings with coffee-growing suppliers, and for its large percentage of farmer-direct coffee purchases. Since
9894-493: Was a wholly owned subsidiary of Green Mountain Coffee Roasters . When Green Mountain Coffee Roasters changed its name to Keurig Green Mountain in March 2014, Keurig ceased to be a separate business unit and subsidiary and instead became Keurig Green Mountain's main brand. In 2016, Keurig Green Mountain was acquired by an investor group led by private-equity firm JAB Holding Company for nearly $ 14 billion. In July 2018, Keurig Green Mountain merged with Dr Pepper Snapple Group in
9996-601: Was announced that Keurig Green Mountain would be sold to an investor group led by private-equity firm JAB Holding Company for nearly $ 14 billion. The acquisition was completed in March 2016. In July 2018, Keurig Green Mountain merged with Dr Pepper Snapple Group in a deal worth $ 18.7 billion, creating a publicly traded conglomerate that is the third largest beverage company in North America. Keurig launched Drinkworks Home Bar in late 2018, developed by Keurig Dr Pepper and AB InBev . The machine creates cocktails, beers and ciders through 24 different pods. The device launched to
10098-624: Was founded in Massachusetts in 1992. It launched its first brewers and K-Cup pods in 1998, targeting the office market. As the single-cup brewing system gained popularity, brewers for home use were added in 2004. In 2006, the publicly traded Vermont-based specialty coffee company Green Mountain Coffee Roasters acquired Keurig, sparking rapid growth for both companies. In 2012, Keurig's main patent on its K-Cup pods expired, leading to new product launches, including brewer models that only accept pods from Keurig brands. From 2006 to 2014, Keurig, Inc.
10200-447: Was in the top ten of the "100 Best Corporate Citizens" each year from 2003 to 2007, and was ranked #1 in 2006 and 2007. GMCR was not under consideration for the ranking in 2008, because the focus switched to exclusively large-cap companies. It re-entered the "100 Best Corporate Citizens" list in 2010 and 2013. In 2005, Green Mountain released its first Corporate Social Responsibility Report. In 2008, GMCR's board of directors added
10302-508: Was marked as one of the biggest hits of the company in Mexico , due to its famous and extended use there as a cocktail beverage to accompany tequila . In 2018, resulting from the merger of Keurig Green Mountain and Dr Pepper Snapple Group, Keurig Dr Pepper started operations in Mexico as Peñafiel Group, commercializing its portfolio in Mexico and expanding for the first time to Mexican and Latin markets. Green Mountain Coffee Roasters introduced
10404-549: Was on Sustainable Business ' s "World's Top 20 Sustainable Business Stocks" annually from 2002 to 2007, and as of 2015 it is on the EPA 's National Top 100 of green power users in the U.S. In 2014, Keurig Green Mountain announced a multi-faceted effort to address the long-term challenges of the global water crisis , and instituted an initial commitment of $ 11 million to support nonprofits working to promote water security. Environmental advocates and journalists have criticized
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