Keurig Green Mountain's global ad expenditure 2012-2015
Keurig Green Mountain – additional information
In 2012, Keurig spent nearly 148 million U.S. dollar on advertising globally, out of which 62.2 million was invested in measured media advertising in the United States. Besides the U.S., the company is also present in Canada, where it operates as Keurig Canada, Inc., as well as in Ireland and in the United Kingdom.
The ad expenditures make up only a small share of the company’s sales revenue. In 2012, when the net sales amounted to 3.86 billion U.S. dollars, it made less than four percent of the total. In 2013, the share of ad spending increased to 4.4 percent, and in 2014 it fell to 2.9 percent. The company’s revenue has been steadily increasing, reaching 4.71 billion in 2014. Out of that, 3.6 billion was generated from portion packs, and 822 million from brewers and accessories. The remaining 281 million came from other products sold by the company, as well as royalties.
According to estimates, Keurig sold 11.6 billion single serve packs (K-Cups) in 2014 and trefis.com projected that 2015 sales would reach 13.2 billion units. The average global price of a single-service pack has been fluctuating – from 0.3 U.S. dollars in 2010, to over 0.35 U.S. dollars in 2011 and 2012, and to 0.32 U.S. dollars in 2014. For 2015, a slight increase to 0.33 U.S. dollars has been projected.
The other major product – brewers – sells equally well. Unit sales have been increasing annually and are expected to reach 11.2 million in 2015. Between 2010 and 2014, a price of a brewer fell from 83.5 to 73.3 dollars. However, an increase to 76.9 dollar is expected in 2015.