Subscription models that lock in pricing for a time period ensure consumers get their favorite pick-me-up, despite tariff uncertainty and inflation concerns, as coffee and tea brand Keurig is demonstrating with its Price Lock event.
Until May 23, consumers can lock-in a 25% discount for their auto-delivery subscription until the year of the year.
For new Keurig consumers, the company offers a reduced rate of $49.99 for one of Keurig’s brewers, including K-Café Smart, K Supreme Plus Smart or K Supreme Smart) with 25% off every order – a minimum of 32 boxes of beverages over 12 months, according to the company.
“During a time when so much is uncertain, Keurig Dr Pepper is looking to give consumers a little peace-of-mind when it comes to the price of their beloved cup of coffee. With this Price Lock event, our goal is to give back to our most loyal consumers and even attract some new ones. It also gives us a compelling offer to help retain and attract high-value subscribers to our auto-delivery program,” Mark Gerner, VP of Keurig.com, Keurig, explained.
Coffee market instability
Arabic coffee reached its highest price of $4 per pound in nearly a week, according to data from Trading Economics. The increase in price highlights concerns over limited supply from one of the industry’s largest importer Brazil, which produces 40% of the world’s total coffee supply. Major companies like Starbucks and Keurig Dr Pepper reported lower Q1 coffee sales as a result of waning consumer demand due to high prices, per Trading Economics.
Keurig’s auto-subscription model intends to deliver ‘value and convenience’ as consumers tighten purse strings
Keurig’s is “not immune to the impact of inflation” but is using the campaign to strengthen the company’s value proposition, Gerner explained.
As consumers face higher grocery prices, their discernment for value, convenience and affordability are shaping retail. Roughly 77% of consumers purchasing foods look for products that can stretch their dollar further, according to a recent study.
Keurig’s auto-delivery subscription model “is designed to deliver ongoing value and convenience to our consumers,” while having access to its beverage portfolio at a discounted rate, Gerner said.
“More broadly, our Keurig.com e-commerce model allows us to build more personalized and consistent engagement over time, something that’s more difficult to achieve through traditional retail alone,” he added.
A pack of 72-count K-Cups costs $55.47 and $41.60 at 25% off. Keurig’s rate is slightly higher than other coffee brands. For example, on its website, Chamberlain Coffee offers a 10% auto-subscription discount for a minimum of two 10-ounce bags of organic coffee at $45.90 and makes 17 cups per bag.
