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Cool Factor And Name Brands Distinguish Two Rivers Coffee In Single-Cup Space

SOUTH PLAINFIELD, NJ -- Two Rivers Coffee was one of the first companies to go head to head with single-cup coffee giant Keurig Green Mountain Inc. when it developed its own Keurig-compatible capsule five years ago. Since then, the South Plainfield, NJ-based company has grown to be a major player in the single-cup arena, with hundreds of millions of coffee capsules rolling off its production line. Two Rivers distinguishes itself from the many Keurig-compatible competitors that have since come to market w...

October 26, 2017

SOUTH PLAINFIELD, NJ -- Two Rivers Coffee was one of the first companies to go head to head with single-cup coffee giant Keurig Green Mountain Inc. when it developed its own Keurig-compatible capsule five years ago. Since then, the South Plainfield, NJ-based company has grown to be a major player in the single-cup arena, with hundreds of millions of coffee capsules rolling off its production line.

Two Rivers distinguishes itself from the many Keurig-compatible competitors that have since come to market with an array of its own trendy, fun, brands and bold, innovative packaging. It's also made a name for itself by licensing iconic national brands like Tootsie Roll and Junior Mints, bringing their timeless flavors to single-cup beverages and leveraging their generation-spanning appeal to help drive sales.

Two Rivers launched with a focus on the retail market, seeing a place for a non-Keurig brand, and it began its major push into office coffee service earlier this year. The company has been making inroads in the OCS channel, as younger workplace consumers gravitate toward the modern, upbeat "personality" of its product line, which officials believe differentiates the company from its more traditional competitors.

"The guiding philosophy of Two Rivers Coffee is to create brands that speak to people and to do that we've developed a product portfolio that is unlike anything else in the industry," said Two Rivers director of marketing Sam Blaney. "Everything about our company sets us apart; from the unique packaging, to our customer interaction, to our focus on utilizing social media, to the fun coffee blends, flavors and names."

SINGULAR SENSATIONS: Two Rivers Coffee cofounders Mayer Koenig (l.) and Eugene Schreiber shine spotlight on the company's ever-growing variety of single-cup capsules in showroom at its South Plainfield, NJ, headquarters.

Two Rivers currently has more than 150 distinctive beverage choices - coffee, tea, hot cocoa, cider and cappuccino - across 15 different brands, with more coming down the pipeline.

In 2012 Mayer Koenig, one of the co-founders, recognized the burgeoning demand for Keurig Green Mountain's K-Cups while working at an office supply distribution business. He noticed that the lack of competition in the industry had created a huge void in the market. Without many competitors, he determined another player in this space could do well.

He knew just whom to approach: Eugene and Steven Schreiber. Eugene, an engineer and inventor, determined that he could reverse engineer a capsule that would be different enough from Keurig Green Mountain's not to infringe on the single-cup giant's patent, as well as construct a machine to fill the capsules. Finding companies that sold machinery to produce the capsules at the time was impossible, so rather than abandon the business plan, Eugene designed the packaging lines himself.

CREATIVE ENERGY: Two Rivers assistant creative director Angelika Skotar (r.) and graphic artist Angela Ang capture company's fun approach to single-cup coffee in packaging that pops. TAKING STOCK: Warehouse manager Edgar Garena readies labels for shipments of Two Rivers' 15 brands of single-cup capsules that currently encompass 150 beverage choices.

Meanwhile, Steven Schreiber, Eugene's son, who holds an MBA in marketing and entrepreneurship, took on the complexities of forming the business and dealt with vendor sourcing, procurement and the logistical operational requirements needed to get the enterprise off the ground.

Koenig partnered with the Schreibers to form Two Rivers Coffee. The fledgling coffee company then began producing its single-serve cups in a small, 3,000-sq.ft. manufacturing plant under its flagship Brooklyn Bean Roastery brand.

Ready to roll an ample supply of capsules off the production line, Koenig aimed high and approached Amazon. He quickly secured an order for truckloads of the single-serve capsules, and Two Rivers had to scramble to fulfill it.

The fledgling coffee company immediately outgrew its initial location and moved to a 20,000-sq.ft. space in Passaic, NJ, to accommodate the production and storage capacity to fill the initial Amazon order.

Sam Blaney, who joined the entrepreneurs as their director of marketing, plays a large role in conceiving new products, along with Two Rivers' marketing, design and R&D teams.

"We understood early in the game that we were not out to compete against the old-school national brands with 100 years behind them," Blaney recalled. "We were originally based in Brooklyn, which has a naturally cool vibe. It's a mixture of modern, urban, historic and ultra-trendy settings, making it one of the most unique places you can find."

He said Two Rivers modeled its creative direction after the many craft beer companies that were successfully taking on the giants in that industry by innovating premium, signature products.

GO WITH THE FLOW: Vanessa Aburmaileh, Two Rivers' plant manager, keeps production organized and ensures steady flow of product out of a state-of-the-art 20,000-sq.ft. facility. GUARANTEED: Two Rivers QC manager Manny Martins uses Javalytics roast-degree analyzer to measure roast profile with precision.

"No one was doing this for coffee. All the brands on the shelf looked and felt so similar," Blaney recalled. "We were looking to make a product line that captured the witty and gritty flavor of Brooklyn with packaging that was just flat-out cool, and we came up with the Brooklyn Bean Roastery line."

Brooklyn Bean Roastery's lineup of coffees, with names and packaging that capture the famous borough, possess inherent flair. They include Fuhgeddaboutit and Cyclone extra-bold dark roasts, Express-O, a subway-themed espresso roast, and flavored coffees named Coney Island Caramel and Vanilla Skyline.

Business has grown exponentially for Two Rivers, warranting another move two years ago into its current 120,000-sq.ft. space. Today, Two Rivers Coffee designs, markets, manufactures and distributes single-serve products nationwide to thousands of retail chains in addition to dozens of online outlets.

"After the move to our current facility, Eugene built more machines in-house as fast as he could, just to keep up with the constantly growing demand," said Blaney. "The plant and office and warehouse that we originally thought we'd have a hard time filling are already bursting at the seams."

Soon after its move to its new digs, the company secured deals with Albertson's, Shop Rite, H-E-B, Shaw's and Stop & Shop among other major supermarket chains and hit its stride. Its penetration into the office coffee service market is also contributing to its continued growth.

Blaney emphasized that Two Rivers' ongoing focus on innovation continues to spur its growth. "We have a wonderful team of individuals here that all come together to bring our new ideas to life," he said. "From our plant manager, Vanessa Aburmaileh, to our quality and standards director, Ben Kuzma, to our CFO, Vincent Papa, everyone at Two Rivers is focused on our goal of creating interesting products."

In addition to pushing the creative envelope to develop its own new brands and varieties that cater to a diverse consumer base, the company has partnered with many big-name brands and has more in the works.

"We've had huge success bringing blockbuster brands to our capsules, especially in the nostalgia candy arena. They're staples on shelves with universal recognition," Blaney said.

Among those brands, Two Rivers also created its Java Factory line, which it considers to be the "Ben and Jerry's of coffee" for its "humorous, fun, light approach," with names for each blend like Dark and Handsome, Wakey Wakey, Java-Nagila (Hanukah coffee) and Flyin' Hawaiian.

"Our packaging is designed to put a smile on your face and the names are meant to entertain and amuse," Blaney said. "We're bringing fun to roasting."

Stash Tea was the first established brand to approach Two Rivers to package its teas in single-cup capsules. Comedy Central sought out the roaster to create a blend themed around its Workaholics TV show. Tootsie Roll Industries turned to Two Rivers to capture the flavors of its Andes Mints and Cella's chocolate-covered cherries as flavored coffees. Its iconic Junior Mints, Sugar Babies, Tootsie Roll and Charleston Chews brands followed a year ago, marking Two Rivers' foray into a line of hot chocolate in single-serve cups and instant packets that have been flying off the shelves, according to Blaney.

"With these products being hits for Walmart and Bed Bath and Beyond, other retail partners were able to see that we were filling another void in the hot chocolate space by making interesting new products," he said. "Sales for this brand just kept growing, outperforming all of our early expectations."

Given its success with Tootsie Roll Industries' candy favorites in hot chocolate format, Two Rivers approached Ferrara Candy Co. and licensed the rights to create Red Hots spicy cinnamon apple cider. And coming this fall, it will introduce Lemonheads, Grapeheads and Cherryheads cider.

Most recently, Two Rivers signed licensing deals to create single-serve Welch's cider and Bailey's Irish Cream cappuccino.

MAN WITH A PLAN: Two Rivers cofounder Steven Schreiber's sourcing, procurement and logistical expertise laid a strong foundation for the company's success and remains instrumental to its rapid growth.

Office coffee service remains a key focus for Two Rivers moving ahead. Its tagline for marketing to the industry segment is "Choice Tastes Better," and its variety packs of flavored coffees have proven to be especially popular in the workplace environment, Blaney said.

"We thought there was room for another real player in the office coffee service channel and we are proving that to be right," Blaney said. "The Two Rivers corporate culture is to keep pushing boundaries in every part of the business to ensure that we are not following others, but instead, setting the trends in our industry."