Keurig hopes consumers willing to pay premium for homemade soda

Pop Goes The News — The company that revolutionized the way consumers make coffee at home is now hoping consumers are willing to pay big bucks for soda.

Described as a “drinkmaker system,” the Keurig Kold allows people to make soft drinks like Coke and Canada Dry and other carbonated beverages at home.

The system isn’t cheap, though.

The machine sells for $399 in Canada and the pods containing syrups and CO2 beads are priced from $5.49 to $5.99 for a package of four.

Each pod makes “8 ounces of perfectly portioned yum,” according to Keurig, meaning consumers are paying $1.50 for less Coke than in a store-bought can.

Currently, Walmart in Canada is selling a case of a dozen 355 ml cans of Coke for $5.97. That’s 4,260 ml of Coke for the same price as 946 ml of Coke made using a Keurig Kold.

The cost of the machine has to be factored in— and this, of course, can’t be calculated without knowing how long the machine will last. But in its first year, the Keurig Kold machine will add 54.5 cents to the cost of each 8-ounce beverage (based on two beverages a day), for a total of nearly $2.05 a glass.

That’s 172.7 litres of Coke in a year for $1,496.50 using Keurig Kold — compared to $238.80 for the same amount purchased in cans from Walmart.

(None of these estimates take into consideration that retailers frequently put cans of name-brand soda on sale — often for as little as $3.50 a case.)

Keurig is clearly tapping into the market dominated by Sodastream, which lost customers who got fed up with replacing (and paying for) CO2 canisters.

Sodastream machines sell in Canada for between $100 and $150. Bottles of syrup, which make 12 litres, sell for about $7, and CO2 canisters (enough for 60 litres) are roughly $20.