retail news in context, analysis with attitude

The Washington Post has a story suggesting that new sales results from Keurig - it sold seven percent fewer single serve coffee pod machines during its most recent quarter, the sixth straight period during which unit sales declined - point to the possibility that this particular coffee trend has run its course.

Sales of the actual pods also sell during the most recent quarter.

The story notes that "coffee pod sales grew quickly during the recession, as Americans shifted to single-serve as a cheaper alternative to buying coffee out at restaurants and other food-service establishments. It also didn't hurt that coffee pods are efficient (they are associated with less coffee waste) and convenient (press a button, and voila!)." But now, an improving economy is creating an environment in which people aren't concerned about the same things, and the coffee pod machines don't look so attractive.

"Coffee pods aren't dead just yet — they still make up about a third of all coffee sold in the United States," the Post writes. " Nor are the machines that use them — an estimated 25 percent of American households own a pod machine. But their future isn't looking quite as bright as pod makers might hope."
KC's View:
If the health of the economy is a major influence on the pod sector, then maybe Keurig just has to wait a bit ... I've talked to more than a few people who think that we could be headed toward a new recession.

For me, the Keurig machines never held much attraction. I like having my 14-cup coffee machine hot and full when I get up in the morning, and the ability to pour myself a cup whenever I need it. And the Keurig machines never seem to make as hot a cup of coffee as I like.

But that's just me.