Keurig Dr Pepper is introducing a limited-time discounted subscription model for its Keurig K-Cup pods as the beverage giant aims to boost sales amid a turbulent coffee market. The company is offering a promotion on its website until May 23, allowing consumers to “lock in” a reduced price on K-Cup coffee pods that will be delivered to their homes through the end of 2025. Each box of K-Cup pods will be available at a 25% discount off the listed price, and subscribers will also gain access to early releases and exclusive product launches, according to Keurig. Consumers have the flexibility to cancel their subscriptions at any time.
This promotion comes at a time when coffee prices are hitting record highs due to severe weather events affecting top producing countries, including excessive rainfall, drought, and fires. With a 10% tariff on green coffee looming, costs are expected to rise further, prompting companies to consider price increases once their inventory backlog is exhausted. “With The Price Lock Event, we’re not just offering a promotion – we’re providing peace of mind,” stated Mark Gerner, the VP of Keurig.com. “This reflects our commitment to delivering consistency and care in every cup.”
Keurig Dr Pepper has encountered difficulties in its coffee segment, reporting a 3.7% decline in net sales during its last quarter. CEO Tim Cofer noted that the company is grappling with inflation in the supply chain for green coffee and the impact of tariffs. “We will explore additional inflation mitigation strategies in response to both green coffee costs and tariffs. Potential price adjustments could be one approach, along with productivity improvements and a broader cost strategy,” Cofer mentioned.
While coffee consumption in the U.S. has surged in recent years, the percentage of Americans who drink coffee daily remained flat in January 2025 compared to the previous year. Approximately 66% of American adults reported daily coffee consumption in 2025, down from 67% in January 2024, according to the National Coffee Association (NCA). Notably, 71% of coffee drinkers now prepare their coffee at home instead of purchasing it from coffee shops, a rise from 63% in 2020.
Brands that emphasize affordability have managed to achieve sales growth despite an overall decline. JM Smucker, known for its budget-friendly Cafe Bustelo and Folgers, reported better-than-expected performance in its coffee business, highlighting that its offerings are “a fraction of the cost” compared to coffee shop prices or energy drinks. “Even a K-Cup is a fraction of the cost,” remarked President and CEO Mark Smucker during a February earnings call.
Keurig Dr Pepper is also focusing on expanding its premium at-home coffee brands, such as Lavazza, La Colombe, and Philz Coffee, which are available at a discount through the price-lock offer. CEO Cofer emphasized their quality-to-cost ratio in comparison to pricier coffee shops. As the company strives to retain consumers, it is also enhancing the sustainability of its packaging. This year, Keurig previewed the next generation of its K-Cup pods, K-Rounds, which feature a plant-based coating and are free from plastic and aluminum. The company has not yet announced the release date for these pods.
In light of these developments, it’s worth noting that some consumers may also be looking for products to alleviate issues like heartburn, similar to how calcium citrate can help. As Keurig Dr Pepper continues to innovate, it may consider how their offerings align with consumer health needs, thereby enhancing the overall coffee experience.