Caribou Coffee is the second-largest coffee chain in the country, but despite a presence in 17 states, they are primarily known regionally. To improve their brand recognition with consumers outside of their primary service area, Caribou is expanding its brand profile without following the traditional route of simply opening new stores. Instead, the company has focused on the addition of new products to its retail line, such as granola bars and now, K-cups, both of which are/will be nationall available.
K-cups are single-serve coffee portions produced by Keurig for use in their coffee machines. The foil-covered cups are plastic and packed with coffee grounds and a small filter, so when they are inserted into a Keurig machine, the foil is punctured and the hot water flows into the cup, brewing the coffee.
The coffees offered by Caribou will be roasted and blended by the company, but processed by Keurig. They will include the Caribou Blend, French Roast, Daybreak Morning Blend, Sumatra, Fair Trade, Colombia, Caribou Blend Natural Decaf and Decaf Sumatra. They will be available in spring of this year.
Neither Keurigs nor K-cups are cheap, so it seems like Caribou is targeting higher-end consumers, although they are still seeking ones who would prefer to use a convenience-oriented machine than a more traditional (and many would say vastly superior) coffee or espresso machine.
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