Tag Archives: Keurig Green Mountain

Governor Nice Guy Fears That Undeserving Students WIll Get a Free Meal

In allowing a universal school meals bill to become law without his signature, Gov. Phil Scott adopted an interesting philosophical position. Take it away, VTDigger:

He noted that the program will fund free meals for even wealthy students. 

“That’s not progressive education funding policy, it’s regressive policy that hurts the very families we are trying to help,” he said. 

Oh yes, heaven forbid that an undeserving child should receive a free lunch. That would be an abuse of the public purse and — follow closely here, things get a little thick — a punishment on the kids who really need a handout.

As the kids used to say, “lolwut?”

This is another case where the governor can’t say the quiet part out loud — that he doesn’t want to provide free school meals despite their proven benefits — but he still has to register his disapproval, so he comes up with transparently phony arguments like “free lunches hurt poor kids” and “a veto fight would distract me from my neverending fight for better schools.” As if we can’t walk and chew gum at the same time.

I wouldn’t mind if he were in the least bit consistent in this position. But he’s not. In fact, this is the only issue where he argues that a non-means-tested government benefit is a bad thing.

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An utterly predictable failure

Oh dear. Keurig Green Mountain, our hometown manufacturer of environmentally wasteful consumer products, is cutting back. About a hundred workers will lose their jobs in Vermont following a decision I’ve been predicting from the very start.

KGM is killing Keurig Kold, its overpriced, slow, inconvenient carbonated-beverage delivery system. The layoffs are directly related to that business decision — although any minute now, I expect a press release from Phil Scott blaming the Shumlin administration. Because that’s Leadership!

Among the Keurig Kold’s many problems:

— an initial list price of nearly $400

— beverage pods that cost a buck twenty-five apiece — and make EIGHT OUNCES of soda.

— Producing an eight-ounce serving takes a minimum of 90 seconds.

— The machine itself is bulky — larger in all dimensions than any Keurig coffeemaker. It weighs 23 pounds. Takes up a lot of counter space.

— The water chamber needs to be pre-chilled to 39 degrees, which takes at least two hours. You’d have to preplan your soda breaks, or burn electricity to keep the thing running all the time.

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A useless program gets a little better

Raise a glass, boys, to Janet Ancel, hardworking chair of the House Ways and Means Committee. For it was she who ignored the express wishes of the Shumlin administration and added some oversight to a program that sorely needs it.

I’m talking Vermont Employment Growth Incentive (VEGI), the slush fund economic development program that gives public funds to private employers promising to grow their workforce. VEGI was up for renewal this year, and the administration wanted a permanent extension (or at least five years) with no strings attached.

What it got instead, thanks largely to Rep. Ancel, was a three-year extension with legislative oversight added. She also inserted a mandated “cost-benefit analysis” to determine whether VEGI is actually accomplishing what it’s supposed to. And yesterday, the full House approved an omnibus economic-development bill including her VEGI provisions. A noteworthy accomplishment, given the administration’s active resistance.

After the jump: the unprovable merit of VEGI. 

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Fake syrup peddler takes over eco-disastrous beverage maker

That didn’t take long. Keurig Green Mountain, the artist formerly known as Green Mountain Coffee Roasters, was sold to a private equity firm in late December; now, the company’s CEO has been kicked out of the way.

Keurig Green Mountain, Inc. in Waterbury has hired a new chief executive officer, promoting current CEO Brian Kelley to vice chairman of the board.

That’s a hell of a promotion. Kind of like being promoted from Governor to Lieutenant Governor.

And Kelley’s replacement?

Bob Gamgort, currently CEO of Pinnacle Foods Inc. in Parsippany, New Jersey, will take over leadership of Keurig on May 2. Pinnacle owns a number of well-known brands, including Duncan Hines, Vlasic, Mrs. Butterworth’s and Log Cabin, Armour and Birds Eye.

Ruh-roh, Raggy. Mrs. Butterworth’s and Log Cabin?

Them’s fightin’ words around these parts.

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A warning shot across Keurig’s unrecyclable bow

Here’s an interesting tidbit from across the pond. Citing environmental concerns, the city of Hamburg, Germany has banned Keurig-style coffee pods from all government office buildings.

Lest you think, “Oh, isn’t that cute?” bear in mind that Hamburg has a population of 1.7 million people. It’s the second biggest city in Germany, and the eighth largest in the European Union.

As part of a guide to green procurement, the German city of Hamburg last month introduced a ban on buying “certain polluting products or product components” with council money. The ban includes specific terms for “equipment for hot drinks in which portion packaging is used” – specifically singling out the “Kaffeekapselmaschine”, or coffee capsule machine, which accounts for one in eight coffees sold in Germany.

“These portion packs cause unnecessary resource consumption and waste generation, and often contain polluting aluminum,” the report says.

This isn’t a Big Deal, not yet; but it is a Deal, and it ought to be causing a bit of concern at Keurig Green Mountain’s Waterbury headquarters. Because if Hamburg becomes a trendsetter, Keurig could start seeing large markets snap shut.

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Outsiders trolling for dirt on KGM sale

A very strange half-page advertisement graced page 3 of Your Monday Times Argus. It was a solicitation for inside information on the operations of Keurig Green Mountain and/or its would-be purchaser, JAB Holding Company. And, oddly, it was littered with typos and lousy grammar.

The ad was placed by something called ACTION Group, whose name is too generic to yield anything useful via Google search. At the top of the ad, ACTION Group claims to consist of “Americans Concerned To Improve Our Nation.”

Two people are named in the ad: William T. Juliano and Deborah Dickinson. You might expect them to be ambulance-chasing lawyers, but no — Juliano is a real estate developer and financier based in New Jersey and Boca Raton, Florida, and Dickinson is a longtime employee in his various enterprises.

The ad claims that ACTION Group is “very concerned” with the announced sale of KGM to JAB, described as “a huge German conglomerate whose intentions are to dominate the global coffee industry.”

You know, like the Third Reich only caffeinated. Hm, that doesn’t sound good.

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You’re as Kold as ice

Keurig Green Mountain, the local startup made good and then assimilated by Coca-Cola, has formally unveiled its new Keurig Kold system online. To me, it still looks like an Edsel in the making. What’s worse, the troubled company is clearly betting the farm on this overpriced gizmo.

The cost alone is a deal-breaker. Add to that the machine’s clunky performance, and you have a product fated for the dustbin of history.

Cost? The list price of a KK is $369 — by far the most expensive of any Keurig device. But that’s just the entry fee. Your $369 buys you the opportunity to make little tiny eight-ounce servings of cold beverages at a per-cup cost of more than a dollar.

And each serving takes more than a minute to produce.

Which begs the question: why in hell would anyone buy this piece of junk?

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Tales of perfidy from the business pages

Hey, working folks, hope you enjoyed Labor Day. Yep, you got your one day; the other 364 belong to the employers.

We’ve got two examples of capitalism at work in Vermont: another shifty move from the formerly conscience-ridden Keurig Green Mountain, and a T-shirt factory meets its inevitable demise.

First up, from the Reuters news service:

When Keurig Green Mountain Inc said last December it was shifting its coffee buying operation to Lausanne in Switzerland from its headquarters in Waterbury, Vermont, it said the move would establish the company as a “global beverage player.”

The seller of brewing machines and single-serve coffee pods said nothing about a little-known exemption in the U.S. tax code…

Ah yes, the tax code: refuge of capitalist scoundrels.

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Keurig Green Mountain and the limits of tax incentives

Photo from killthekcup.org.

Photo from killthekcup.org.

Last week, Keurig Green Mountain announced 330 layoffs, including 200 in Vermont. The move came after sales and profit shortfalls hammered the company’s stock price. (Last November, KGM traded at more than $150/share. Now it’s barely over $50.) One analyst told MarketWatch.com that KGM shows “‘telling’ signs of a company struggling to turn around its business.”

The layoffs were widely reported in the Vermont media. What wasn’t mentioned is that since 2007, KGM has received approval for a whopping $7 million in job creation tax incentives through the state’s Vermont Economic Growth Initiative (VEGI). What does KGM’s contraction (and uncertain prospects) mean for its generous tax incentives?

I sought answers from Fred Kenney, Executive Director of the Vermont Economic Progress Council and head honcho of VEGI. He offered a fair bit of reassurance on the VEGI mechanism and state oversight of KGM grants, but I remain dubious on the fundamental concept of tax incentives as a means to economic growth.

In short, while VEGI is a well-designed program of its kind, the KGM experience rings some very real alarm bells about it.

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Keurig Kold: If there’s a market for this, my faith in humanity takes another hit

Been an interesting week for homegrown planet-bespoiler Keurig Green Mountain. First, the maker of costly coffee pods had to do an embarrassing about-face on its decision to DRM-up its new coffee maker. It was a capitalistically noble effort to derail competition for its profitable (and planet-bespoiling) K-cups, but consumers rebelled.

Understandable. It’s kinda like if oil companies made cars, and DRM’d the tank so you could only buy their brand of gas. Consumers would naturally rebel. Or, here’s an even more insane one: it’s as if you could buy a printer dirt cheap, but then had to pay extortionate prices for cartridges.

Oh wait.

Anyway, embarrassing walkback for KGM. But help is on the way, in the form of its new cold-beverage system. Er, “kold.”

Keurig Kold, set to launch this fall, was developed in a partnership with Coca-Cola, Keurig’s largest shareholder, and the Dr. Pepper Snapple Group. Keurig CEO Brian Kelley said the new machine will make a Coke, and other beverages, indistinguishable from the originals.

The magic behind the Keurig Kold: its patented Karbonator system. Ah, the Keurig Kold Karbonator, or “KKK” for short. What could go wrong?

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