Issue link: https://read.dmtmag.com/i/491368
STiR tea & coffee industry international 39 Single-serve private label capsule makers TreeHouse Foods and Mother Parkers Tea & Coffee have developed code breaking Keurig- compatible capsules for the new Keurig 2.0 carafe brewers. Shortly after Keurig Green Mountain announced its new "lock out" technology last winter; TreeHouse Foods filed a lawsuit alleging Keurig's coded K-Cups, when combined with the new brewer, violate federal laws that prevent companies from using "unreasonable methods" to restrain trade. During an earnings call six months later Sam Reed, TreeHouse executive producing the new cups for licensed partners. Production of first generation brewers was being phased out, he said. During the call Kelley mentioned that several formerly unlicensed brands had become licensed partners. These include Target's Archer Brand, BJ's Wholesale Club and Harris Teeter grocery chain as well as Nestle Coffee-Mate K-Cup Packs. In August, Kraft announced it had signed a licensing, manufacturing and distribution deal as well. Kraft's Maxwell House is the third-largest retail coffee brand in the U.S. be- hind Folgers and Starbucks, both of which sell their coffee in licensed K-Cups. The deal also includes Kraft's Gevalia, Yuban and the new McCafe brand coffees. The move came as a surprise since Kraft sells a competing single- cup Tassimo brewer and capsules that are not compatible with Keurig style brewers. The undersides of Keurig-licensed lids are coded with information that the machine uses to brew coffee at the roaster's optimal setting. The 2.0 capsules come in three sizes to brew a single cup, a carafe or a half gallon for foodservice. First-generation K-Cups, regardless of manufacture, will not activate the brewer and it will not accept fill-your-own "eco" capsules. Most competing machines will puncture and brew 2.0 licensed capsules. - By Dan Bolton Code Breakers chairman, c.e.o. and president, made a surprise announcement that his company had successfully reverse-engineered Keurig's 2.0 capsules, including the larger carafe capsule. The company subsequently began manufacturing 300 SKUs for its 60 private label customers which include several grocery and department store chains. Kroger, Safe- way and Supervalu Inc. all sell non-licensed K-Cup compatible coffees. In late August, as the new Keurig 2.0 brewers first went on sale for $149, $169 and $199, Mother Parkers, makers of the non-licensed RealCup, "delivered another innovation breakthrough that will ensure customers continue to enjoy the widest possible choice and the best available taste in single-serve coffee and tea capsules." "Standard size capsule brews, as well as larger carafe and multi-serve formats, will soon be available for independent brands of single- serve capsules," said Bill VandenBygaart, vp of business development. "Consumers will be the ultimate winners by having the best tasting coffees and teas available," he said. RealCups coffee and tea capsules will fit all K-Cup single-serve brewers, both old and new styles, he added. Keurig c.e.o. and president Brian P. Kelley told analysts that as of July the company had converted all its manufacturing capability to