K-Cups and Single Serving Systems Soar/Shift from Coffee Sector to Soft Drinks as Consumers Continue to be Willing to Pay for Convenience

Keurig Green Mountain, Inc., a firm based in Waterbury, Vermont, helped to revolutionize the coffee market with its increasingly popular K-Cups. These K-Cups can be placed, one at a time, into special home brewing units to quickly make one serving of freshly brewed coffee. K-Cups have a small, hard plastic shell which contains an appropriate amount of coffee plus a tiny filter. The concept is based on convenience: no cleanup, no coffee grounds to dump, a quick brewing time, and the ability to choose from a wide variety of flavors, geographical sources and caffeine contents. Compared to brewing ground coffee in the traditional manner, K-cups are expensive (roughly fifty cents per cup), but people seem quite willing to pay for the convenience. The phenomenon has spread widely throughout both homes and offices in many nations worldwide, and Keurig has a long list of eager competitors.

In addition to coffee, K-Cups are offered filled with other beverages that brew in hot water, such as tea and hot cocoa. A very wide number of food and coffee firms offer K-Cup style, single-serving coffees, including Gloria Jean and Starbucks.

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