Panera Bread Puts Branded K-cups on Retail Shelves in US

Panera Bread Co. is getting in on the K-Cup action.

The fast casual chain said it would debut single-serve coffee pods nationwide, featuring the same coffee served at its 1,736 bakery-cafes.

Panera already offers ground coffee, but the pods are meant to be more convenient for customers who want to drink Panera coffee at home. The coffee is from Distant Lands Coffee, based in Texas.

The pods are currently available at Supervalue, Save Mart, Hy-Vee, Dierbergs and select Winn-Dixie locations.

“With Panera Single-Serve Cups we are offering them the same fresh coffee experience in their own kitchen,” Stephanie Crimmins, vice president, said in a statement.

St. Louis-based Panera reported a profit of $43 million on revenue of $572.5 million for the quarter ended Sept. 24. But with just a 1.7 percent rise in comparable same-store sales, company executives are taking “deliberate steps” to drive transactions and add operational capabilities.

Overall, single-cup brewing has taken off in recent years, and now accounts for 13 percent of the market, according to research firm IBISWorld.

“Consumers are increasingly demanding specialized, high-quality coffee products, particularly in single use servings,” analyst IBISWorld Sarah Turk wrote in September.

In October, local coffee roaster Ronnoco Coffee Co. disclosed its own plans to launch a “K-cup” next year. “They’re very much on trend,” said Scott Meader, who is CEO of the $60 million company, at the time.
But Panera may have a harder sell, according to Jack Russo, an analyst with Edward Jones who covers Starbucks.

“Panera is not known really for their coffee but for their sandwiches and breads,” he said in an email message. “But it is worth a try and this can be (a) profitable, high margin business for them if it works out.

Original article can be located here: http://www.bizjournals.com/stlouis/blog/2013/11/panera-launches-single-serve-coffee-pods.html