Tracking Emerging Growth in Coffee

Challenge

As the single cup coffee segment matured, large pack sizes began to gain sales momentum. Keurig Dr Pepper sought to understand how these shoppers also matured and whether they were starting to seek value as consumption habits evolved. Were shoppers looking for larger package sizes to experience value?

Solution

Keurig Dr Pepper leveraged 84.51° Stratum Switching reporting to understand whether shoppers were switching between smaller count packages to large counts, to determine which products were most relevant for the shelf. The team identified that shoppers were switching from small packs to large packs at an index of 273 (2.7x expected), signaling a need for large pack expansion.

“Utilizing the 84.51° Stratum Switching data to understand shopper behavioral shifts between packages, we were able to collaborate with Kroger to adjust assortment and space within the coffee aisle, accommodating expansion into bigger sizes. The category and brand growth experienced is driving household engagement and corresponding market share for KDP and Kroger’s total business.” - Karen Durfee, Director, Category Management, Keurig Dr Pepper

Results

Informed by 84.51° Switching Insights, Keurig Dr Pepper developed a recommendation in collaboration with Kroger to modify assortment and allocate additional space to large packs. Identifying this trend has empowered Keurig Dr Pepper to better meet shopper needs and led to continued engagement for Keurig Dr Pepper and the category.

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