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Kroger to Sell Private Label Coffee Pods

June 12, 2012

Looking to tap the growing single-serve coffee trend, Kroger Co., plans to introduce private label single-serve coffee pods that would be compatible with Green Mountain Coffee Roasters’ Keurig brewers.

Kroger store imagesKroger spokesman Keith Dailey told Reuters that the grocer is exploring other systems in addition to the Keurig system. Driving the single-serve coffee cup trend is consumers’ desire for convenience and high quality coffee made on demand at home.

Starbucks also announced last week that beginning today it will be selling K-Cup coffee pods for Keurig brewers, apparently months earlier than industry observers expected.

In-Store Displays
In other Kroger news, the grocer selected Pratt Industries as its sole supplier of its private label in-store displays, which features sustainably sourced packaging and materials.

Pratt’s system is based on a modular display program designed with interchangeable parts and graphics packaging manufactured using 100 percent recycled containerboard. “We have developed a sustainability scorecard that can calculate, capture and report the environmental benefits of using recycled materials,” said David Connors, vice president of sales and marketing for Pratt Display.

The floor stands in the Kroger program alone will save 66,300 trees, 27.3 million gallons of water, 15.6 million kilowatts of energy, divert 12,870 cubic yards of landfill, and avoid 3,900 tons of carbon dioxide emissions, according to Pratt Industry’s calculations.

In addition to the environmental benefits, the program’s graphics and display structures will create a more uniform look in the stores and boost corporate brand recognition.

John Failla imageSBD Views: Interesting news from Kroger on two fronts. We expect more retailers to follow suit quickly with single serve PL coffee. The deal with Pratt Industries addresses an opportunity to increase PL penetration with more aggressive in store merchandising while also advancing sustainable packaging at Kroger. The roll out of this program will be interesting to watch. -- John Failla for Store Brands Decisions