Investors Get First Look At Keurig Kold

BURLINGTON, MA -- Keurig Green Mountain provided a first look at its eagerly awaited Keurig Kold system to 70 investors and analysts at its Boston-area technology center on May 14. The company said the machines will cost around $300, or more, and will roll out gradually over the next year and a half. They will first be available online this fall, followed by limited arrivals in stores. The national rollout is expected to occur during the 2016 holiday season.

The cold drink system uses a two-chamber portion pack that injects carbonation into a beverage as it's made. The capsule contains carbonation "beads," held in a top chamber, and beverage syrup in the pack's bottom.

The water in the machine's reservoir is chilled separately to 39°F. in 60 seconds, then dispensed in 8-fl.oz. portions.

Keurig Kold was developed in partnership with Coca-Cola, Keurig's largest shareholder, whose signature cola will be among the system's 16 initial drinks. Also included in the inaugural lineup will be Dr Pepper, Snapple, flavored teas, cocktail mixers, sports drinks and zero-calorie flavored waters by Keurig. The capsules will retail for 99¢ to $1.29 apiece.

Keurig chief executive Brian Kelley emphasized to investors that the new machine will make a Coke and other beverages that are indistinguishable from the originals. He said the new pods can be recycled in any community that accepts No. 7 plastic.

Keurig Kold's slower than expected rollout and relatively high price tag drew skepticism from several investors who attended the presentation. The company's stock fell 5% in after-hours trading following the announcement.