Coca-Cola $1.25 Billion Buy-In Green Mountain’s “Keurig Cold” machine Vs. Pepsi Starbucks Coffee

Recently, Coca-Cola Co. acquired 10% of Green Mountain Coffee Roaster (GMCR) as its first step towards a major shift away from unhealthy beverages like soda. Coke spent $1.25 Billion to piggy-back Green Mountain’s “Keurig Cold” machine at home market that dispense beverages like coffee, teas, juice and lattes. The new GMCR Keurig Cold machine is set for 2015 market roll-out. It will offer multiple beverage serving technology that on-average cost consumers just $17 per cup.

Overall, the “at-home-beverage production market” has jumped 85% reports Director, James Dean @ IHUMANMEDIA.COM. Coca-Cola will add to its investment in Green Mountain by another 10% equity buy-in within the next 24-months. Its the initial step by Coca-Cola to expand growth through “at home” distribution. 

The cost savings of brewing at home beverages versus Starbucks Coffee is great. For example, a 6-ounce cup of coffee made at home costs about 17 cents a cup per day, adds up to $1.19 a week and $62.05 a year. But Starbucks 16-ounce grande coffee from at $2.29 per day, adds up to $16.03 per week, and a hefty $835.85 per year — the price of a mini vacation. So the savings (about $835.85 per year) of home brewing is significant to the average family budget. 

The beverage industry will hit $1.9 Trillion globally by 2015 says Mr. Rickman. Although, growth remains weak at 2% so we expect consolidation and technology innovations like “at-home-cold-machines” to continue.

We expect Coca-Cola to acquire a tea beverage maker to fill-out its brand offerings in the at-home-beverage market adds Mr. Rickman. Tea consumption in the United States is a $15 Billion industry versus coffee $18 Billion; although worldwide tea has a more drinkers than coffee.

Beverage Industry Statistics Data
Total retail dollars from the sale of wine, beer and distilled spirits $113.5 billion
Total annual sales in beer industry / category $91.6 Billion
Percent beer accounts for the share of total beverage alcohol retail dollar sales 52%
Bottled water consumed in U.S. in 1997 3.2 billion gallons
Percent of 8-year-olds that drink at least one can of soda pop daily 56%
Percent of schools that sell soda 60%
Soft Drink Annual Sales $60 billion
The average number of cans of soda drank by males in the 12- to 19-year age group 868 cans a year
The world’s second most consumed drink (Non-Water) Tea
The world’s most popular / consumed drink Water
Beverage industry’s revenue for the year 2007 and estimated gross profit of % $42.5 billion
Beverage Industry Gross Profit 35.15%
Coffee Drinking Statistics
Total percentage of Americans over the age of 18 that drink coffee everyday 54%
Average size of coffee cup 9 ounces
Average price of an espresso-based drink $2.45
Average price for cup of brewed coffee $1.38
Total percentage of coffee drinkers who prefer their coffee black 35%
Total percentage of coffee consumption that takes place during breakfast hours 65%
Total amount of money spent by importing coffee in U.S. each year $4 billion
Total percentage of coffee Brazil produces of entire worlds output 30%
Total amount of cups of coffee (9 ounces) a coffee drinker consumes daily 3.1
Total average of money spent on coffee each year by coffee drinker $164.71
Total number of U.S. daily coffee drinkers 100 million
Total number of U.S. daily coffee drinkers who drink specialty beverages (lattes, cappuccinos, mochas, etc.) 30 million
Total percentage of coffee drinkers who drink 13 or more cups of coffee each week 24%
Total percentage of coffee drinkers who go to premium places (Starbucks, Coffeebean, etc.) when they get coffee out 34%
Total percentage of people who go to lower-price outlets (Mcdonalds, Dunkin Donuts, etc.) when out 29%
Total percentage of coffee consumed between meals 30%
Total percentage of coffee drinkers who add cream and/or sugar 65%
Total amount of U.S. coffee drinkers who claim to need a cup of coffee to start their day 60%
Total percentage of coffee drinkers who say coffee makes them feel more like their self 54%
Total percentage of coffee drinkers who have a a cup within the first hour of waking up 68%
Total amount of yearly money spent on specialty coffee in the U.S. $18 billion USD
Tea Statistics
Pounds of tea imported to the U.S. each year 519 million pounds
Total amount of tea consumed in the U.S. every day 1.42 million pounds
Number of men and women who drink tea every morning 2 billion
Total projected sales of tea for U.S. in 2012 $15 billion
Total amount of cups 1 pound of loose tea can make 200 cups
Total amount of tea produced every year worldwide 3,000 million tons

Products manufactured by the beverage industry include: bottled water, juice, sparkling and still drinks, syrups, nectars, ready-to-drink and regular teas and coffees, dairy drinks, energy drinks, sports drinks, fruit powders, and alcoholic drinks such as beer, wine, cider and spirits.

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