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Category Challenge

National coffee brands dominated the coffee aisle, making innovation in grocery increasingly difficult.

 

Solution

Seeing opportunity in single-serve coffee technology, Noun team members helped Keurig grow their innovative technology in grocery. The first challenge to overcome was convincing retailers to place Keurig machines on shelf, creating demand for K-cups. Once household penetration reached critical mass, the tea aisle was attacked by proving to grocers that K-cups sold better than tea. Chipping away at tea, Keurig began to change consumer behavior and quickly become dominant in the category.

 

Result

Keurig distribution grew from 2 SKUs in select locations to an entire category within the coffee aisle nationwide. The Single Serve Coffee category generated $1.9B in sales in 2016, making it the top selling category in coffee. 25-30% of American households now own a Keurig.