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Do you think Keurig forces coffee makers to sign exclusive deals?

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Last Post Mar 9, 2011 7:12 AM By: BekkaF
BekkaF
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Re: Do you think Keurig forces coffee makers to sign exclusive deals?

Mar 9, 2011 6:15 AM
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My understanding is, any company who wants to put their coffee in K-cups has to approved by Keurig/Green Mountain before those companies can be licensed to manufacture their own coffee in K-cup form. Those companies are not owned by Keurig by this agreement. Its quite obvious Keurig is more centered on their machines/brewers, and know having good choices for coffees is what is going to drive those brewer sales, their own coffee sales, & they gain the added benefit to their good "reputation" & reviews.

We also have to look at the countries any of the single serve brewers were introduced in. The good ones ie. DG and Tassimo were introduced to the european countries. There are other good models but I'm just using the two known for intelligence? ; ) From the similar business models of both the DG and the Tassimo, both are limited to proprietal coffee choices, very little growth and expansion towards availability and offering new new coffees, both have subscription modes, although I can find all of the DG choices in local stores here, and both have "serious" CS issues. The Keurig however was developed here in the states. For once we have a company that is catering to the states. Their business model is drastically different than DG and Tassimo and its working. Keurig has a mind towards developments for the future & are already devoted to working on partnerships with other brewer companies to develope the ultimate speciality as well as regular coffee maker, maybe even machine"s". So they are listening to what the customers want and are coming through. Although there have been problems with some of the Keurig models of brewers, the K CS is very responsive to customers from reading reviews. They speak english and can give you direct answers, without asking for personal information other than to ship replacement brewers if necessary. Keurig will succeed, as well as other single brewers that are sure to be developed in the near future here in the states. In my opinion, unless Kraft/Tassimo/Gevalia becomes a little more opened minded, more progressive by expanding on premium coffees & the reuseable disc, and cease being so proprietal, it is indeed likely our Tassimos will become obsolete or relegated to strictly a Gevalia system.
nightelfhunter@mac.com
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Re: Do you think Keurig forces coffee makers to sign exclusive deals?

Mar 9, 2011 2:51 AM
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I'd agree. I don't think that Keurig worries too much about locking anyone in. If I were in charge of Tassimo licensing, I'd only need a few bullet points:

1. Here's a development kit.
2. Here's our packaging standard.
3. Here's our distribution network.
4. Here's our cut.
Doug
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Re: Do you think Keurig forces coffee makers to sign exclusive deals?

Mar 8, 2011 12:45 PM
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I agree with Bekka. I think that it's not that Keurig has an exclusive agreement with roasters, but that Kraft wants to retain a "Kraft only" ideology for its Tassimo.

--
Kraft - Where Stupid is as Stupid Does!!
BekkaF
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Re: Do you think Keurig forces coffee makers to sign exclusive deals?

Mar 8, 2011 7:31 AM
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No, I don't think Keurig has the coffee companies sign exclusive deals, other than to supply them with coffees. Some of the coffees Keurig has in stock are also made into pods for the Senseo. Keurig has a whole different business policy than Kraft. I do think Kraft could take a few lessons here.
jamesrgeib@yahoo.com
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Do you think Keurig forces coffee makers to sign exclusive deals?

Mar 7, 2011 11:42 PM
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Here is why I think we're not seeing non-Kraft, premium brands like Peets or Caribou come to the Tassimo table. Keurig says "Sure, we'll allow you to make k-cups using your coffee IF you sign this form that says you won't supply to Kraft for the Tassimo." Those brands see how well Keurig is doing and says, "Sounds good to me!".

If that is the case, available brands for the Tassimo are quickly dwindling, and Kraft better approach the few remaining ones soon if they want to include them in the Tassimo family.

I won't be holding by breath......