Keurig recently announced that its uber-popular coffee pod brewer is getting a redesign later this year. But before you get too excited, you should know that the redesign will end up costing its consumers more in the long run. The new coffee brewers will include some sort of technology that will only brew coffee pods made by Green Mountain Coffee (Keurig's coffee vendor), or major brands that are licensed Keurig vendors (including Starbucks, Folgers and Dunkin' Donuts). This technology is meant to directly cut out the competition, meaning more affordable, non-Keurig licensed coffee pod vendors.
Though Keurig CEO and President, Brian Kelley, claims the company is not trying to cut other brewers out and will continue to license unlicensed vendors, it's not exactly a win for consumers. Off-brand coffee pods are 5-25% cheaper than those made by Keurig's partners. This means that even if Keurig licenses the cheaper, unlicensed brewers, there will undoubtedly be a cost increase, and consumers will effectively be paying up to 25% more for the same non-Keurig brands that they used to save money on. Still, it's easy to see why Keurig wants to cut out the competition. According to Kelley, unlicensed pods accounted for 12% off all coffee pod sales last quarter. Sounds like they're starting to sweat!