Keurig launches K-Cup ‘price lock event’ to help consumers avoid rising coffee costs

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Keurig Dr Pepper is launching a limited-time discounted subscription model for its Keurig K-Cup pods as the beverage giant looks to juice sales amid a volatile environment for the coffee category.

The company is running a promotion through its website, until May 23, where consumers can “lock in” a discounted price on K-Cup coffee pods to be shipped to their homes through the end of 2025. Each box of K-Cup pods will be 25% off its listed price, and those who opt-in will get access to early drops and exclusive launches, Keurig said. Consumers can also cancel their subscription at any time.

The deal comes as coffee prices reach record highs after excessive rainfall, drought and fire hit some of the top producing countries. Costs are set to rise even more with a 10% tariff on green coffee, with companies planning to raise consumer prices when their backlog of inventory runs out.

“With The Price Lock Event, we’re not just offering a promotion – we’re offering peace of mind,” said Mark Gerner, the VP of Keurig.com at the company. “This is our way of delivering consistency and care in every cup.”

Keurig Dr Pepper has faced challenges in its coffee segment, reporting a net sales decline of 3.7% in its last quarter. Part of the issue it’s facing is inflation in the supply chain for green coffee as well as tariffs, CEO Tim Cofer told investors on the company’s earnings call.

“We will consider additional inflation mitigation steps in response to both green coffee and tariffs. Additional pricing could be one of the levers, but there are others as well, productivity mix and a broader cost base,” Cofer said.

While U.S. coffee consumption has ballooned significantly in recent years, the number of Americans who drink the beverage at least once a day was flat in January 2025 compared to the same period a year prior. Approximately 66% of American adults reported daily coffee consumption in 2025 compared to 67% in January 2024, according to the National Coffee Association.

A majority of coffee drinkers, 71%, only prepare coffee at home and do not buy it at a coffee shop, up from 63% in 2020, the NCA said.

Companies that play up affordability have been able to eke out sales gains despite a broader sales decline. JM Smucker, which owns lower-cost Cafe Bustelo and Folgers, saw its coffee business perform better than expected, as its offerings are “a fraction of the cost” of coffee shop or energy drinks.

“Even a K-cup is a fraction of the cost,” President and CEO Mark Smucker said on an earnings call in February.

Keurig Dr Pepper is also looking to grow its premium at-home coffee brands, including Lavazza, La Colombe and Philz Coffee, which are available at a discount through the price-lock deal, by emphasizing their quality to cost ratio versus more expensive coffee shops, CEO Cofer said.

As the company works to retain consumers, it’s also working to evolve the sustainability of its packaging. This year, Keurig also teased the next generation of its K-Cup pods, K-Rounds, which are wrapped in a plant-based coating and do not contain plastic or aluminum. The company has not yet revealed when the pods will hit the market.