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Love Soft Drinks? Make Them at Home with Keurig KOLD

Keurig Green Mountain Inc.GMCR has finally launched its much-hyped product - Keurig KOLD brewer. The new brewer marks Keurig Green Mountain's entry into the cold beverage space, which is five times the size of the hot beverage market.

The brewer uses pods to make sodas, sports drinks and other beverages at the touch of a button. It uses Karbonator beads containing beverage-grade carbon dioxide to carbonate each drink. Keurig Green Mountain claims that an eight-ounce portion size contains 100 calories or less.

The company announced that Keurig KOLD will be available at select retail outlets as well as online from October in six cities, including Atlanta, Boston, Chicago, Dallas, Los Angeles and New York.

The brewer, with a suggested retail price (SRP) of $369.99, is available in white and black and comes with a set of two Keurig KOLD drinkmaker glasses. The KOLD pods, priced at $4.49-$4.99 SRP for a four-count box, include drinkmaker accessories, such as storage carousels and specialty-designed glassware.

To increase the brand power of the new machine, Keurig Green Mountain inked a 10-year partnership in Feb 2014 with The Coca-Cola Company KO and Dr Pepper Snapple Inc. DPS . Per the deal, the specialty coffee retailer will exclusively make Coca-Cola and Dr Pepper Snapple branded pods for the cold beverage system. The strategic partnership provides a strong platform for Keurig KOLD to grow globally.

Apart from Coca-Cola and Dr Pepper Snapple brands, the Keurig KOLD portfolio includes Keurig's brands like Seraphine, FLYTE, Waterful, Red Barn Kraft Soda, Flynn's Soda Shop and Tierney's Iced tea.

The Zacks Rank #4 (Sell) company produces coffees, teas and other hot beverages that are sold in K-Cup and Vue portion packs especially made for the single-serve Keurig brewers.

Of late, the company has been witnessing lower-than-expected sales of Keurig 2.0 brewers. Its share price was also significantly impacted following the negative reviews about Keurig 2.0 brewer launched in Aug 2014.

Investors are of the opinion that Keurig KOLD might find it difficult to succeed as the U.S. cold beverage space has been declining over the past decade. Consumers who are already moving away from carbonated soft drinks are unlikely to invest in a high-priced soft-drink maker.

So it is yet to be seen if Keurig Green Mountain can make a mark for itself with the new brewer in the $50 billion soft-drink market, so long dominated by home-brewed cold drinks market leader, SodaStream International Ltd. SODA .

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COCA COLA CO (KO): Free Stock Analysis Report

DR PEPPER SNAPL (DPS): Free Stock Analysis Report

KEURIG GREEN MT (GMCR): Free Stock Analysis Report

SODASTREAM INTL (SODA): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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