Rogers to Sell Coffee Pods That Fit Green Mountain’s Keurig

Rogers Family Co., a closely held coffee roaster and distributor, will begin selling one-cup coffee pods that are compatible with Green Mountain Coffee Roasters Inc. (GMCR)’s Keurig brewer, President Jon B. Rogers said.

A 12-pack of Rogers Family’s single-cup pods will have a recommended retail price of $6.99 at supermarkets including Costco Wholesale Corp. (COST), he said in a telephone interview. Lincoln, California-based Rogers will announce the one-cup coffee packets on Oct. 24, he said.

Green Mountain, based in Waterbury, Vermont, has partnered with Starbucks Corp. (SBUX) and Dunkin’ Donuts to sell branded K-Cups for its Keurig machine. Third-quarter sales at Green Mountain more than doubled to $717.2 million as consumers snapped up the single-cup brewer, the company said in a statement in July.

The suggested retail price for a 14-count box of Dunkin’ Donuts K-Cups is $11.99, Dunkin’ Brands Group Inc. said in August. The Canton, Massachusetts-based company began selling K- Cups in its stores earlier this year.

Rogers’ single-serve cup is different than Keurig’s patented model because it has a mesh screen on the bottom instead of plastic, Rogers said. The company had been working on the pods for about four years, he said.

Rogers also supplies coffee to Safeway Inc. (SWY) supermarkets and SuperValu Inc. (SVU) stores such as Albertsons and Shaw’s, according to the company website.

“We saw that there was an opportunity here,” Rogers said. “We went to Green Mountain and they said, ‘Get lost.’ We decided we have to do it on our own.”

Green Mountain was unchanged at $67.85 at 4:53 p.m. in New York. The shares earlier dropped as much as 2 percent to $66.50.

To contact the reporter on this story: Leslie Patton in Chicago at lpatton5@bloomberg.net

To contact the editor responsible for this story: Kevin Orland at korland@bloomberg.net

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