The Keurig machine has become a home-appliance maker that many consumers envy. However, this year a decline in sales of Keurigs and K-Cups are evident. After closing the third quarter of 2014 up 13 percent, they dropped every quarter since by 22 percent this past summer.
One of the main reasons for this decrease is environmental concerns. The K-Cup pods are un-recyclable, and while Keurig plans to make K-Cups recyclable it will not be available till a distant date. Another reason for this decline is because the new Keurig machines, 2.0, are equipped with DRM technology that prevents customers from using other brand of pods. This limits the variety, and choice of consumers who may prefer other brands of coffee/tea outside of Keurig brands.
Customers have outlined their complaints towards the Keurig, and CEO Brian Kelley has already started to implement new strategies to make improvements. Kelley is hoping to make the Keurig less bulky, less expensive, a better drink selection and servings larger than eight ounces.
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