Months, not years, until Keurig 2.0 is cracked

If Keurig thought that the implementation of digitally restricted coffee pods would clamp down on ‘coffee piracy’ and secure them a market leading position, they better thing again – that is the warning from other rival companies.

If we look at retail sales in the American market then Keurig are the largest coffee brand in the United States, but that hasn’t stopped them worrying about losing revenue to those who sell unlicensed K-Cups for their machines.

Currently, it is estimated that around 15% of capsule market is comprised of these unauthorised, yet legal, alternatives.

After losing the monopoly in 2012 Keurig had sit idly by and watch imitations appear, however with the imminent release of the Keurig 2.0 they are installing a method of copy protection that, it is claimed, will prohibit the use of these third-party capsules.

Obviously this move will ensure that Keurig and their partners control the market which, in turn, will increase their profits. From a business point of view it is a logical move, but it is a decision which has angered many consumers and the machine maker’s rivals.

TreeHouse Foods, one such manufacturer of private-label K-Cups filed a lawsuit against this change, arguing that Keurig are purposefully stifling competition, reducing choice and taking advantage of an inflated pricing structure. The move mirrors a number of similar cases that were heard in Europe where perhaps the most notable ruling saw Nestle, who own Nespresso, relax their hard-line strategy in conjunction with court-rulings.

But what happens if the United States legal system side with Keurig? Sam Reed, TreeHouse’s CEO, does not appear to be too worried.

“Our analysis indicates that under any circumstance that it will be a matter of months, not years, before we replicate the technology for the cups or the pods,” he stated at Citi’s consumer conference earlier on this month.

Whatever happens, you can be sure that we at World Coffee Press will be monitoring proceedings closely.

Could we be entering an age where coffee is digitally managed? What do you think?