Coffee giant announces genius new subscription product

Between stressful commutes that are part of the return-to-office trend and the rising prices for eggs and bacon, morning might not be your favorite time of day. 

Does that first cup of coffee make everything a little bit better?

Whether you stop by a Starbucks or Dunkin’ on your school drop-off route or on your commute to the office, or if you’re a home brewer, coffee is life for plenty of us. 

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The majority of American adults (71%) prepare their coffee exclusively at home using a drip coffee maker, but single-up brewers, such as those made by Nespresso and Keurig, are a close second. 

But no matter how you brew that first cup, or the next two (coffee drinkers have an average of three cups a day per the National Coffee Association), you can’t help but notice that prices are up. 

Coffee consumption is up overall but so are prices

A trifecta of events has affected coffee prices, sending them to record highs: excessive rainfall, drought, and fire all took a toll in some of the world’s top coffee-producing countries. 

To make matters worse, President Trump’s announcement that he will assign a 10% tariff to green coffee could mean coffee sellers will have no choice but to raise prices when their current inventory runs out. 

“Coffee has actually been exempt from tariffs in the United States since the 1800s. So, my hope is that, with this 90-day pause, while it’s not ideal to still have 10% tariffs, that the administration can negotiate some more targeted deals that recognize things like the United States cannot grow coffee outside of Hawaii or Puerto Rico, which account for half a percent of worldwide coffee production,” Cason Crane, CEO of Explorer Cold Brew, told ABC News.

Related: Starbucks CEO shares plan for a whole new menu

So in the midst of all this uncertainty, when a good deal comes around, you just have to jump on it. 

Keurig’s limited-time discount subscription plan

Keurig Dr Pepper  (KDP)  just launched its first-ever “Price Lock Event,” a special offer for its Keurig K-Cup pods: subscriptions are 25% off through the end of the year.  

The company says auto-delivery subscription customers can have K-Cup coffee pods shipped to their home or office and lock in the discounted prices through the end of 2025. 

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Anyone who signs up also gets access to special offers, such as exclusive flavor releases, and can purchase a brewing machine for $49.99.

“With The Price Lock Event, we’re not just offering a promotion—we’re offering peace of mind,” said VP Mark Gerner in a statement. 

Related: Starbucks CEO sends strong message about customers, stock drops

Keurig licenses with a number of high-end coffee brands, and that sector of the business is growing. The company is committed to “building a tier of premium and super-premium coffees anchored by brands like Lavazza, La Calombe, Philz, and others,” CEO Tim Cofer said on the company’s April earnings call.

The premium brands are included in the special offer, as are brands like Starbucks, Peet’s, and Dunkin’. 

The new program could help Keurig Dr Pepper recover from a tough first quarter. The company reported a net 3.7% sales decline in its coffee business in Q1. Tariffs and inflation related to supply chain, including fuel and transportation costs — all played a role, Cofer said on the call. 

Keurig’s discount offer expires on May 23.

Related: Veteran fund manager unveils eye-popping S&P 500 forecast

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