Keurig CEO blames disastrous financials on DRM

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ā€œWe were wrong.ā€

You donā€™t hear that very often.

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Being an autodrip- or French-press-kinda gal, Iā€™d like to know why people like K-cup coffee. Iā€™ve had it, and it just didnā€™t have the punch that auto-dripped or French-pressed coffee does.

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There are several reasons Iā€™ve resisted buying a Keurig machine, but this makes me want to get one just to reward this level of honesty and willingness to understand the customersā€™ position.

I still love my old coffee machine, and itā€™s unlikely Iā€™m going to need to replace it for a very long time, but maybe in the meantime I can buy some Keurig stock.

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Keurig Chief Financial Officer Fran Rathke said that shipments of pods by volume were below the companyā€™s expectations due to a ā€œsomewhat higher than expected consumer price elasticity at retail.ā€

Apparently thatā€™s how an MBA says ā€œCustomers didnā€™t react well to higher pricesā€.

Unfortunately, this appears to be a ā€˜we were wrongā€™ of the ā€˜to think that we could get away with itā€™ flavor, rather than the ā€˜to have triedā€™ flavor; so the plan is to ā€˜bring more brands into the ecosystemā€™ rather than drop the stupid plan.

(The other reason that Iā€™m generally unwilling to give them the benefit of the doubt is that the earnings call included the dreadful spew below from the president and CEO:

ā€œSome of this was due to consumer confusion around pod compatibility
which weā€™ve mentioned in the past. Although we are seeing improvement as
we transition more formally unlicensed brands into our manufacturing
system.ā€

It is basically never good when ā€˜consumer confusionā€™ gets blamed. At best, customers are confused because your marketing and/or directions arenā€™t sufficiently clear or your product is excessively hard to use. At worst, itā€™s a cloyingly patronizing ā€˜the little people just donā€™t like our fucking with them because they donā€™t understand the benefits that fuckery will bring, not because itā€™s overtly contrary to their interests or anythingā€™. In this case, Iā€™m going with the latter, since ā€˜pod compatibilityā€™ was deliberately made confusing and uncertain by adding the DRM system.)

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Wouldnā€™t it be great if part of the reason their sales went down was because people felt guilty of all the unnecessary landfill created by these things?

Or that people realized that using heated soft plastic as a coffee filter canā€™t possibly be good for you?

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Itā€™s handy at work if you want exactly one cup of coffee and donā€™t want to screw around with methods that take more than 20 seconds. Thatā€™s pretty much the entire reason the things exist.

Anyway, I expect part of Keurigā€™s trouble is DRM, but a larger part is the increasingly (and desrvedly) bad publicity surrounding the expense and wastefulness of it all compared to every other coffee method.

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" He also plans to launch a cold-brew coffee-brewing machine."

Iā€™m imagining a big plastic jug, pre-filled with K-water containing the proprietary solvent that will dissolve the K-cold coffee pods.

Me, I use my existing machine. I just donā€™t plug it in.

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Iā€™ve had the same one for 35 years [mine not pictured], it takes licking and keeps on ticking!

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But itā€™s better than instant coffee? Which is admittedly not so great.

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Consumers have a poor ability to read sincerity.

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Not only do these pod machines make terrible coffee but they are horrible for the environment. I for one would not shed a tear if Kurig (and nesspresso, and whoever else) went out of business. Grind your own beans!

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Iā€™m still not sure this even counts as DRM. We need a new word for it.

Or maybe we donā€™t - I thought the Lexmark case invalidated this exact practise?

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Do you have a recommendation? I loved my old Braun and it died. The new Brauns arenā€™t any good.

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Yup, much better than instant. Not that thatā€™s saying much.

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Corporations are responsible to the share holders, not the consumers. I agree it is nice they didnt blame the consumer and their non decision making employees this time, but I dont think this was a shift in perception either. If the stock prices rebound, the customer complaints will go right back to the deleted folder.

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Convenience. Thatā€™s it, really. The coffeeā€™s nowhere near as good as French press, drip, or pour-over, but having a rack of a half-dozen different kinds of coffee (dark, light, flavored, decaf) to just grab, brew, and have a single cup in thirty seconds outweighs the quality difference a lot of the time.

I donā€™t own one, but when we had one in our office, it was terrific. Everyone could have the kind of coffee they wanted, there was no cleanup, nobody on ā€œcoffee pot dutyā€.

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Go to a thrift store. Many of them will let you actually plug appliances in to see if they work, and old coffeemakers are ā€œhipā€ now.

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I wish I did. The one Iā€™ve got is about twenty five years old, and I canā€™t even remember the brand name. I think the key to its longevity is simplicity. Water goes in, gets heated, and filters through the ground coffee. Not fancy, but it does the trick.

Itā€™s even simpler than my parentsā€™ old percolator, although I miss the percolatorā€™s noise: blblblblb-shhh-hmhmhmhm.

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Cause I really like coffee but canā€™t drink more than 2 or so cups without caffeine issues I have a jar of instant decaf at work as the only other choice is kcups which on the whole are not that much better at 10 times the cost of the instant coffee. It definitely isnā€™t all that much better than the drip machine which is still way cheaper as well.