TL;DR
Keurig Dr Pepper is capitalizing on the trend of expanding into different beverage categories by introducing new products such as C4 Energy drink and La Colombe ready-to-drink coffee.
Keurig Dr Pepper, the renowned beverage company, has been making waves by venturing into different beverage categories. Recognizing the potential for growth beyond traditional boundaries, they have recently introduced exciting new products that independent retail store owners should consider testing in their stores.
In 2018, Keurig Dr Pepper formed through the acquisition of Dr Pepper Snapple Group, Inc. by Keurig Green Mountain, Inc. This move allowed them to adopt a holistic approach to the beverage industry. CEO Robert J. Gamgort emphasized the importance of exploring new territories instead of staying confined to established lanes. This innovative mindset has become increasingly prevalent, with more players expanding into different categories such as hot and cold beverages, as well as alcoholic and non-alcoholic options.
One notable partnership Keurig Dr Pepper undertook was with Nutrabolt. The collaboration involved a sales and distribution agreement for the C4 Energy drink. Keurig Dr Pepper aims to capitalize on the energy drink market, which is growing rapidly and still offers room for expansion. With less than a 5% share in this market, independent retail store owners can seize the opportunity to tap into the rising demand for energy drinks.
Another exciting alliance was formed between Keurig Dr Pepper and La Colombe. The companies announced a sales and distribution agreement for La Colombe ready-to-drink coffee, as well as a licensing, manufacturing, and distribution agreement for La Colombe branded K-Cup coffee pods. Ready-to-drink coffee is a significant factor in the beverage industry, and Keurig Dr Pepper, with its dedicated distribution system, has the potential to excel in this category. Independent retailers should consider incorporating these ready-to-drink coffee products into their inventory to meet consumer demand.
Keurig Dr Pepper is also proactively preparing for a potential recession. CEO Robert J. Gamgort believes that the most disruptive events frequently catch everyone off guard. While a recession is being forecasted by many, Gamgort suggests that this may not necessarily come to pass. Nonetheless, Keurig Dr Pepper recognizes the importance of readiness and is taking steps to ensure they can adapt to any economic changes.
Additionally, Keurig Dr Pepper expects pricing to moderate by 2024 as inflation subsides. This insight is valuable for independent retail store owners who need to plan their pricing strategies accordingly for the next few years.
With the expansion into different beverage categories being a growing trend, retailers can stay ahead by diversifying their inventory. The C4 Energy drink and La Colombe ready-to-drink coffee offer potential for increased sales and customer satisfaction. Furthermore, preparing for a potential recession and considering pricing strategies for the future will help independent retailers navigate economic uncertainties wisely.
