Campbell, Green Mountain Coffee Strike K-cup Soup Dispensing Deal

(RTTNews) - World's largest soup maker Campbell Soup Co. (CPB) struck a deal on Wednesday with specialty coffee company Green Mountain Coffee Roasters, Inc. (GMCR), whereby Green Mountain's Keurig coffee vending machines will start dispensing Campbell's chicken soups for the single-serve pod market.

"Campbell's is an iconic brand that shares our focus on harnessing innovation to delight consumers - making them an ideal partner as we take this first step beyond beverages for the Keurig system," President and CEO Brian Kelley said in a statement.

Campbell's Fresh-Brewed Soup consists of a broth K-Cup pack and an included packet of dry pasta and vegetable blend garnish, enabling consumers to create a satisfying snack in minutes by simply brewing a broth K-Cup pack over this garnish.

The companies expect to launch three varieties of the new soup in 2014, including Homestyle Chicken Broth & Noodle. The deal will bring together Campbell's, the number one soup brand in the U.S., and Keurig, the number one coffee brewer brand in the U.S. by dollar sales. Camden, New Jersey-based Campbell is the maker of ready-to-serve soups, pastas and sauces.

The deal will help satisfy the growing snacking behavior among U.S. consumers, providing them with an ultra convenient option for a hunger satisfying low-calorie afternoon snack. Green Mountain's Keurig brewing system will dispense a cup of flavorful hot broth with a touch of a button that will offer consumers the taste and experience of Campbell's soups.

The speed and convenience of having Campbell's Fresh-Brewed Soup through the Keurig brewing system will open several new marketing avenues for Campbell to expand its customer base as it is expected to be offered in the same areas where Keurig Brewed K-Cup pack varieties are sold.

Waterbury, Vermon-based Green Mountain has for long seen a need to diversify its business due to the increasing competition in the coffee vending market as well as the nearing patent expiry of its K-cups.

According to the companies, Campbell's Fresh-Brewed Soup uses proprietary Keurig manufacturing expertise to seal in the ingredients' peak flavor, while Keurig's single-serve knowledge will help dispense an authentically delicious, perfectly-portioned snack.

"This innovative partnership is a win for consumers and for both companies, and represents another important step as Campbell expands into higher-growth spaces. Campbell is connecting with consumers in new and exciting ways," Campbell President and CEO Denise Morrison stated.

CPB closed Wednesday's regular trading session at $42.92, up $0.17 or 0.40% on a volume of 3.90 million shares, and GMCR closed at $86.30, up $1.14 or 1.34% on a volume of 5.28 million shares.