CANTON, MASS. — Dunkin’ Brands Group, Inc., The J.M. Smucker Co. and Keurig Green Mountain, Inc. have expanded their partnership by signing agreements for the manufacturing, marketing, distribution and sale of Dunkin’ K-Cup packs at retailers nationwide in the United States and Canada, and on-line. Financial terms of the partnership were not disclosed.
Currently, Keurig is the exclusive producer of Dunkin’ K-Cup packs, which previously were sold only in Dunkin’ Donuts restaurants in the United States. Meanwhile, Smucker currently manufactures and distributes Dunkin’ Donuts brand premium bagged coffee where groceries are sold under license from Dunkin’ Donuts.
Under the new, multi-year agreement, Smucker will distribute and market Dunkin’ K-Cup packs exclusively to grocery chains, mass merchandisers, club stores, drug stores, dollar stores and home improvement stores. Keurig, which will remain the exclusive producer of Dunkin’ K-Cups, will distribute and market Dunkin’ K-Cup packs to specialty stores and office superstores. Dunkin’ K-Cup packs will continue to be available in Dunkin’ Donuts restaurants in the United States.
The expanded retail program will launch in the middle of 2015 with five varieties of Dunkin’ Donuts’ signature coffee initially available in K-Cup packs, including Original Blend, Dunkin’ Decaf, french vanilla, hazelnut and Dunkin’ Donuts Bakery Series Chocolate Glazed Donut flavor. Also beginning this spring, Dunkin’ K-Cup packs will be sold on-line on www.DunkinDonuts.com, www.OnlineStore.Smucker.com, www.Keurig.com and other on-line retailers.
“This exciting new agreement with two trusted and long-standing partners, The J.M. Smucker Co. and Keurig, will make Dunkin’ K-Cup packs available at thousands of additional retail outlets nationwide, as well as on-line, and will enable us to further tap into the growing consumer demand for single-serve at-home coffee,” said Nigel Travis, chairman and chief executive officer of Dunkin’ Brands. “Not only will this increase the consumption of Dunkin’ Donuts coffee, it will help us continue to build our brand relevance with new and existing customers, which we believe will, in turn, drive incremental visits to our restaurants.”
Richard Smucker, c.e.o. of Smucker, said the partnership will allow the company to meet the needs of consumers who have been asking for Dunkin’ Donuts at-home single-serve coffee offerings.
“The expansion of our relationship with Dunkin’ Brands and Keurig allows us to satisfy this consumer need by bringing Dunkin’ K-Cup packs into new retail channels, including wherever groceries are sold,” Mr. Smucker said. “The addition of Dunkin’ K-Cup packs will further strengthen our Smucker coffee portfolio as we work with our retail customers to continue to bring excitement and new growth opportunities to the coffee category.”
Brian Kelley, president and c.e.o. of Keurig, said the expanded availability of Dunkin’ K-Cup packs will build consumer awareness and passion for the Keurig brewing system.
“Our unique ability to partner with Dunkin’ Brands, J.M. Smucker and more than 60 other brands has helped Keurig, an innovative technology-driven personal beverage system company, to revolutionize the at-home and away-from-home beverage experience, bringing more than 400 high-quality beverage varieties to Keurig consumers with the consistent simplicity and convenience they’ve come to expect from the brand,” he said.
Concurrent with its expanded partnership with Smucker and Keurig, Dunkin’ Brands also announced details of a new franchisee profit-sharing program as part of a long-term deal under which Dunkin’ Brands will equally share with qualified U.S. Dunkin’ Donuts franchisees its net profits from the sale of its K-Cup packs and packaged coffee from outlets outside of its restaurants.
“When we introduced Dunkin’ K-Cup packs as a retail item in our restaurants in 2011, we said we would only consider allowing this product to be sold at other retailers if we could do so in a way that benefitted both us and our franchisees,” Mr. Travis said. “In keeping with that commitment, I am delighted to announce that we have been able to reach a profit-sharing agreement with our domestic Dunkin’ Donuts franchisees that we believe will drive incremental, profitable growth for both Dunkin’ Brands and our franchisees.”
