Keurig's Vue -an innovation born out of necessity?

by chee leng-Oncoffeemakers

Keurig Vue

Keurig Vue

Keurig Vue is a finalist for the Edison Award 2013, an award that is given to companies with innovative products.

So, just how innovative is this Keurig Vue. At first look, it seems that the reason for its innovation lies in the choices that consumers has when it comes to brewing their drinks.

Consumers can customize the temperature, the strength, the cup size of their coffee or tea.

There is one drawback, they will need to use the Vue pack instead of the usual K-cups.

It seems that the leader of the single cup coffee brewer is taking a back track to the normal coffee machine?

The reason why people go for single serve coffee machine is because of its convenience, the assurance that companies are packing the coffee or tea at the optimal conditions so that every beverage is consistently good.

If I want to choose the amount of water, the cup size, the temperature, I will go for a normal brewer, no?

Personally, if I will to get a single cup coffee machine, I want it to be hassle free, press a button and get a beverage.

My $0.02

You need to innovate to ward off competitors, both old and new. There is always Nespresso that is coming out with new flavors (and they launched a new machine too).

Then there is Versimo from Starbucks that could get much market share due to the big distribution network of Starbucks.

Then there is the so many other entrants in the market, Gloria Jeans, Bunn, CBTL etc.

Until recently, the only thing that Keurig (GMCR) does is expand its range of flavor. I suspect that the consumption of that is falling, mainly due to refill that can be purchased.

So, to better sales, they need to come out with an entire new range. And so you have Vue.

Personally, I do not think it would cause a surge in their sales. But, they probably need to do this, to pacify the shareholders that they are innovating and there are new products launching in the market.

I think the many joint ventures that they have done with Dunkin Donuts, Starbucks last two years add more value to them then launching a product such as this.

I think the only place where it could grow is the office coffee segment which is competitive and very price sensitive.

Here is how the Keurig Vue works, what is your thoughts on this?

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