Keurig, the popular single-cup coffee maker will have a new German home when the German-based JAB Holding Co. finalizes its $14 billion deal to buy the company, which is expected to be finalized in the first quarter of 2016.
JAB said that they plan to operate Keurig as an independent company, will keep its U.S. headquarters in Waterbury, Vermont, and that customers shouldn’t notice much of a difference.
Keurig has had some recent difficulties with slowing sales of both its coffee makers and the K-cup pods that are used in the machines. Sales of Keurig machines dropped 23 percent in 2015 and its K-cup business, which makes up more than 80 percent of the company’s revenue, only saw a 1 percent increase.
The move is part of a strategy for JAB to inch its way to the top of the coffee market which is currently led by Nestle. Keurig will be added to the holding company’s coffee stakes, which include Jacobs Douwe Egberts, Gevalia, Tassimo, along with Peet’s Coffee & Tea and Caribou Coffee.
Source: CBC
Photo: Keurig
