Keurig does a My K-Cup about face after a big backlash
The company is bringing back its old coffee pods that allow customers to brew non-Keurig coffee in an effort to revive interest in its 2.0 brewers that have so far been a bust.
Keurig Green Mountain GMCR 3.39% will bring back its refillable My K-Cup coffee brewing pods in time for the holiday season, caving in to a ferocious backlash from customers who have balked at buying its pricey new brewers since they can’t make the coffee of their choice with those machines.
The company announced the decision on Wednesday during a conference call with analysts following the publication of financial results that showed an alarming 23% decline in sales of Keurig Brewers that forced it to lower its 2015 sales growth forecast. The poor numbers sent shares in Keurig Green Mountain, once one of Wall Street’s hottest stocks, tumbling.
Keurig Green Mountain clearly misread its customers’ attachment to the old pods, which were refillable and let customers brew the coffee grinds of their choosing. The newer 2.0 model only brews Keurig-branded coffee cups.