Green Mountain K-cup Nationwide Price Increase Rejected by On-line Retailer Alpine Valley Coffee.

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On November 9th, Green Mountain Roasters, the company that exclusively supplies Keurig coffee K-cups and Keurig tea K-cups worldwide, raised prices by 15%! Charlie Hall, CEO of Alpine Valley Coffee calculated the time and expense of creating complex pricing schemes, producing coupons, processing many levels of prices through their system, creating promotions and adjusting inventories was a big expense. So he eliminated them. He simplified business processes and pricing levels and passed the savings along to his customers. He actually lowered prices from where they were before the price increase.

Keurig Green Mountain Coffee K-cups Alpine Valley

Alpine Valley Coffee is a division of Alpine Valley Water Company, Cincinnati, Ohio.

On November 9th, Green Mountain Roasters, the company that exclusively supplies Keurig coffee K-cups and Keurig tea K-cups worldwide, raised prices by 15%. Wow, I thought, talk about lousy timing.

Charlie Hall, CEO of Alpine Valley Coffee said, “I couldn’t believe my eyes but there it was in black and white. On November 9th, Green Mountain Roasters, the company that exclusively supplies Keurig coffee K-cups and Keurig tea K-cups worldwide, raised prices by 15%! Wow, I thought, talk about lousy timing.”

Alpine Valley Coffee headquarters is located in Ohio so economic hardship and the financial difficulties many families are going through are top of mind with many business executives. Hall worried how to cushion the increase and keep customers happy. So he called a meeting with staff, accountants, marketing consultants, shipping vendors and trusted advisors and asked them, “How can we turn the Keurig K-cup coffee price increase into a competitive advantage?” Hall said they each came back with spreadsheets, PowerPoint presentations and binders full of data. They had done their due diligence and made their recommendations.

“I didn’t sleep for a week. Then, in the middle the night, it came to me. We needed to lower our prices on Keurig coffee K-cups.”

Hall calculated the time and expense of creating complex pricing schemes, producing coupons, processing many levels of prices through their system, creating promotions and adjusting inventories was a big expense. So he eliminated them. He simplified business processes and pricing levels and passed the savings along to his customers.

For the past year, Alpine Valley Coffee retailed a box of coffee for $13.95 but coupons were varied and plentiful. With the price increase, they were going raise it to $14.95 - just to stay even. But with their new Simple Discount Pricing Plan, they could actually lower prices and make it easier for the consumer to understand.

The new Alpine Valley Coffee Keurig coffee K-cup pricing structure is simple:

  •     10 + boxes $10.95 per box
  •     6-9 boxes $11.95 per box
  •     1-5 boxes $12.95 per box
  •     Buy 4 or more 22 or 24 ct. boxes or place an order for more than $40 and customers qualify for FREE SHIPPING.

Alpine Valley Coffee also did some packaging innovation with the Keurig coffee K-cups. Variety 8 Packs, Variety 100 Packs and Variety 50 Packs were created. Customers can choose 100 K-cups from a select list that has been designed to meet the needs of coffee and tea drinkers who prefer a particular type of coffee or tea but still want variety. Response was great so we created Build Your Own 100 Pack and Build Your Own 50 Pack. To build your 100 pack just choose ten 10 packs of any K-cup Coffee, Tea, or Hot Chocolate or choose five 10 packs to build your own 50 pack.

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Charles Hall
Alpine Valley Coffee
(513) 672-3400 ext. 120
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