Keurig has now reeled in two of the three top soda companies for its upcoming cold-drinks machine, according to the Wall Street Journal. Fred Katayama reports.
You may soon be able to brew your own Dr Pepper soda at home. The Wall Street Journal reports the beverage maker signed a deal with the coffee-pod manufacturer, Keurig Green Mountain. With a new Keurig cold-drinks machine, consumers will be able to make at least 30 varieties drinks - both carbonated and non-carbonated - at home. The Dr. Pepper Snapple deal means Keurig now has reeled in two of the top three soda companies. Coca-Cola liked the home brewing prospects so much it bought a stake in the company last year. Keurig says the market cold drinks at home could become bigger than that for hot beverages. All this puts pressure on SodaStream International, the maker of the countertop machines that make carbonated water. Its sales and its stock have been fizzling in the U.S. because consumers are opting for healthier juices and teas over sodas. In search of new revenue, it's hooked up with PepsiCo to test sales of two brands not sold in stores, Pepsi Homemade and Sierra Mist Homemade. Keurig says its machines will brew cold drinks in less than a minute. That raises two questions: whether consumers used to instantly brewed coffee will have the patience to wait that long and whether they're willing to pay up for a machine that the Journal says could cost $200. Investors are drinking to that, pushing up the stock at the open.