The FINANCIAL — Dunkin’ Brands Group, Inc. The J.M. Smucker Company and Keurig Green Mountain, Inc. (Keurig) on July 19 announced that more than 300 million Dunkin’ K-Cup pods were sold in the first year since being made available at retail outlets nationwide, with sales totaling nearly $220 million in IRI retail scanned data. IRI Market Advantage, a market research company focused on the consumer packaged goods (CPG) industry, reported the results and included Dunkin’ K-Cup pods on its list of Rising Stars in Food & Beverage.
According to IRI’s April 2016 report, New Product Pacesetters: Harvesting the Fruits of Innovation Done Right, over 10,000 new CPG products hit retail shelves each year with generally less than 10 new products capturing more than $100 million in their first year of sales and only half of those reaching the $200 million mark.
“We were extremely pleased with the successful launch of Dunkin’ Donuts varieties in K-Cup pods. Dunkin’ Donuts coffee consumers had been requesting this launch for quite some time and, as shown by consumer repeat rates, they are continuing to embrace the ability to purchase Dunkin’ Donuts K-Cup pods wherever they shop for groceries,” said Steve Oakland, The J.M. Smucker Company Vice Chair and President U.S. Food and Beverage. “The momentum behind the brand remains strong and we are excited to expand our K-Cup portfolio by bringing consumers two new offerings, including Dunkin’ Dark and Pumpkin Spice, two varieties that are consumer favorites.”
“The success of Dunkin’ K-Cup pods speaks directly to consumers’ love for the Dunkin’ brand and the great tasting, consistent experience they get from their Keurig brewing system,” said Mark Wood, Keurig Green Mountain’s Chief Business Development and Partner Officer. “The wide availability of Dunkin K-Cup pods has created new Dunkin’ fans, making it possible for them to enjoy their beloved Dunkin’ brand with Keurig quality and convenience.”
“The launch of Dunkin’ K-Cup pods in the retail channel went much more quickly than we expected and was very well received by retailers and consumers as evidenced by these remarkable sales results,” said Paul Carbone, Dunkin’ Brands Chief Financial Officer. “We are delighted that through our partnership with The J.M. Smucker Company and Keurig Green Mountain that in our first year of sales we were able to get hundreds of millions of cups of Dunkin’ Donuts coffee in the hands of new and existing customers. As we continue into the second year of our partnership with the Smucker Company and Keurig, we look forward to continuing to build Dunkin’ Donuts’ brand equity and to reinforce our brand’s overall coffee leadership.”
In support of the goal to drive its coffee leadership, the companies also announced that this summer two new K-Cup pod varieties – Dunkin’ Dark and Pumpkin Spice – would be available at grocery stores and retailers nationwide. Dunkin’ Dark coffee features a bold, rich taste with the signature smoothness expected from Dunkin’ Donuts coffee. New Pumpkin Spice offers a seasonal blend of favorite fall flavors including pumpkin, nutmeg, and cinnamon. Both K-Cup pod varieties are made with 100% premium Arabica coffee, and will be available at select retailers throughout the U.S. beginning this month, according to Dunkin’ Donuts.