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Keurig, Owner Of Budweiser, Continues With Launch Of Its At-Home Cocktail Maker


03/19/2019


Keurig, Owner Of Budweiser, Continues With Launch Of Its At-Home Cocktail Maker
The faltering performance of both companies - Keurig Dr Pepper and Anheuser-Busch InBev, are driving the two companies to quickly move forward to create a joint venture with each other that is intended to ensure increased sale for both.
 
As a first step, the companies have together developed an imitation of Keurig's well-known coffee maker which is designed to make cocktails and has been named the Drinkworks machine. A pilot project for the same has been launched by the companies in November at St. Louis in the United States. According to a report published in The Wall Street Journal, the companies now have plans to further expanding the project and launch the same in the US states of Missouri, Florida and California.
 
Both Keurig and AB InBev have been trying to identify the issues that are troubling them and pulling back their performance, and the joint venture between them is expected to provide some relief to both the companies in terms of sale and revenues through this project. There was a 0.5 per cent drop in the fourth quarter of last year in the sale of brewers and single-serve pod of the at-home coffee giant's sales. On the other changing customer tastes of beer and liquor is the troubling spot for Budweiser's parent company until it is able to adapt to the change in consumer behaviour. According to IWSR data, while there was a 1.5 per cent drop in the sale of unit case volume of beer last year, there was an increase in the demand and sale of spirits.
 
According to the report published in the Journal, because there are no large brands in its portfolio, AB InBev is seeking to sell of its license spirits brands for the appliance and is in negotiations for that purpose. Three brands of beer and cider are also included in the Pod flavours.
 
The cocktail making machine that the two companies have produced jointly is priced at a retailing price of $399 in St. Louis. It can however be availed for $299 through pre-ordering. For most of the common cocktails, such as margaritas and mojitos, $15.99 has been set as the price of the liquid-filled pods that are being sold in packs of four. Alcoholic drinks are produced by the appliance by the addition of water and carbonation to the pods. There is falouvering in addition to a shot of alcohol in each of the pods.
 
A pod-based appliance that allowed users to make their own soda have been earlier developed by Keurig in partnership with Coca-Cola. However the copany left the project after about less than year since it was launched.
 
its own bartending assistant Opn this year is being planned to be launched by Pernod Ricard, which is the second largest spirits company in the world. However, their own drinks have to be made by the users of that appliance.
 
There were no comments available from officials of both Keurig Dr Pepper, AB InBev and Drinkworks.
 
(Source:www.cnbc.com)


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