U.S. Coffee Industry Evolution The U.S. coffee industry enters and evolution in consumer product choices and convenience. The well-known household coffee brands offered by P&G, Phillip Morris & Kraft, and Nestlé were lost market share to specialty coffee roasters offering variety and superior taste, while companies such as Green Mountain Coffee Roasters, Inc. (GMCR) had strategically positioned themselves to take advantage of this new consumer trend. Innovative Disrupter After the full acquisition of Keurig by GMCR the coffee industry was set on edge by the Keurig single-serve home brewer concept. GMCR’s innovative technology was a disruptive force in a marketplace that was dominated by long-standing industry drip pot brewing machines …show more content…
• In November 2009, GMCR acquired Timothy’s Coffees of the World Inc. (“Timothy’s”), the rights to the Timothy’s World Coffee brand and wholesale business as well as licensed brands Kahlua® and Emeril’s®. Located in Toronto, Canada, the acquisition of Timothy’s also enabled North American geographic expansion with a Canadian brand platform that included manufacturing and distribution synergies in that region (GMCR, Inc., …show more content…
To remain competitive within this segment GMCR utilizes strategic alliances and license agreements to enter new markets, reduce operating costs, develop and diffuse new technologies, and expand their offerings (Dess, McNamara, & Eisner, 2016). Strategic alliances with competitors such as Starbucks Corporation and Dunkin’ Brands, Inc. allow GMCR to access to their marketing, manufacturing, and distribution capabilities in return for packaging their coffee, tea, and other beverages to be sold in the K-Cup portion packs. GMCR maintains agreements under which licensees manufacture, market, and sell coffee makers co-branded with Keurig-brewing technology. GMCR is also the licensee in agreements with gourmet coffee makers to utilize their brand of coffee in their offerings with the Keurig brewing system. The continued consumer adoption of the Keurig brewing system provides alliance partners and licensed brands a valuable channel for growth (GMCR, Inc.,