Kelley said work had begun on setting-up a Vermont-based production facility for the first pods, while Q2 saw his firm buy a 585,000 sq ft site for its first dedicated Keurig cold production facility in Lithia Springs, Georgia.
Green Mountain Coffee Roasters (GMCR) expects to invest $300m+ in this site over the next five years, he added, and create 500+ new jobs; details of the cold carbonated system remain patchy, but consumers won’t need to buy separate CO2 cartridges for the system.
'We're working closely with Coke'
Coke bought a 10% stake in GMCR for $1.25bn this February, and the new partners plan to make pods for use in the patented Keurig Cold system – a fiscal 2015 launch mean it could hit store shelves as early as October 2014.
“We are on track and working closely with The Coca-Cola Company to develop and perfect some of their brands for the system,” Kelley told analysts last Wednesday, as GMCR reported net sales up 6% to $1.02bn and operating income up 20% to £243m for Q3 of Fiscal 2014 ending June 28.
“We are also developing and perfecting a variety of our own new brands to be launched in our cold system and we are working with other potential co-partners,” he added.
Moving beyond the single-serve narrative
Keurig Green Mountain will ship its Keurig 2.0 hot system this fall, where this moves the company beyond the single-serve narrative – by allowing customers to prepare four-serving coffee carafes using K-carafe pods.
The company estimates that around 75% of the coffee consumption in American Keurig households comes from its Keurig 1.0 machine and the remaining 25% from another brewer, with the latter used for its higher volume and “many multiple serves”.