Cold Call

How Keurig Brewed a Return to Growth

May 27, 2025
David Fubini, a Senior Lecturer at Harvard Business School, and Patrick Sanguineti, a Research Associate and co-author of the Keurig case study, dive into Keurig's rocky journey from innovation to stagnation. They discuss the company's strategic missteps and the pivotal leadership changes following its acquisition by JAB Holding Company. Key topics include the introduction of the controversial Keurig 2.0, the strategic options for growth, and the challenges of merging with other brands like Dr. Pepper. Their insights on revitalizing Keurig's brand in a saturated market are particularly compelling.
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INSIGHT

Keurig's Rise and Fall Insight

  • Keurig went from creating a revolutionary single-serve coffee system to facing decline due to complacency and product missteps.
  • This case reveals how strategic focus and bold leadership can reignite growth.
INSIGHT

Keurig's Business Model Insight

  • Keurig’s pod-centric 'razor and blades' model was key to its success.
  • The machine was a gateway to recurring pod sales, enabling consistent and high-volume consumption.
ANECDOTE

Keurig 2.0 Consumer Backlash

  • Keurig 2.0 introduced a DRM-like system locking pods to machines, sparking consumer backlash.
  • Customers were upset at loss of choice, mirroring negative reactions seen with Apple’s DRM.
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