“Keurig hit a home run with coffee, but they overestimated taking their coffee experience into carbonated soft drinks with Keurig Kold. I think consumers find it convenient and easy to buy soft drinks everywhere outside the home, so having a machine inside their home didn’t provide them much value. Plus, the Kold price-value relationship was hard for consumers to understand.
I commend the company for the innovative idea, but consumers respond to solutions. Innovation has to solve consumers’ future needs. And there was risk attempting to innovate in a declining category. Perhaps there wasn’t enough pretesting done from a consumer standpoint prior to Kold’s launch which, in the end, made it an expensive experiment.”
Atlanta-based Mike Musso is a managing director at Conway MacKenzie Inc. and leader of its Consumer Packaged Goods Advisory Services. He has over 30 years of experience in the consumer packaged goods industry as a senior operations, turnaround and restructuring executive.”