We have a Keurig machine and love it. Sure, there are ways to get a better tasting cuppa but to be able to just hit a button and get a decent dose of black gold, this machine is worth the money.
Needless to say, other companies came out with unofficial pods for their coffee (and tea) in a Keurig brewer. The free market is alive and well. Keurig did not like losing the licensing revenues so they came out with their 2.0 system. This system looks for a small logo on the face of the pod and will not make coffee if that logo is not there.
The free market issued a collective SCREW YOU! and sales of the new system tanked. Ways to hack the new system were broadcast on the internet (it is dead simple).
Now this - from CNN Money:
Keurig Green Mountain gets roasted. Stock drops 10%
Sales of Keurig brewing machines and accessories tumbled 23% in the first quarter compared to the prior year.
The company had a lot of excuses, but the basic problem is there are too many Keurig machines in stores and people aren't buying them, especially the newest Keurig 2.0 model.
"We do have some headwinds," said Chief Financial Officer Fran Rathke on a call with analysts.
Investors are fleeing the stock. Keurig (GMCR) dropped 10% Thursday when the market opened for trading. Shares are now down more than 25% this year.
They initially came out with a good product that filled a niche. Customers flocked to it and Keurig got greedy and wanted to hog all of the market. The customers voted with their dollars. End of story.
Time for a new CEO but I doubt the company can sustain the damage the present CEO did. Digital Rights Management (DRM) is never ever a good idea. Anyone who proposes it should be fired immediately.
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