Corporate affairs Keurig

1 corporate affairs

1.1 environmental impact
1.2 legal , media issues
1.3 corporate governance

corporate affairs
environmental impact

in 2010s, beginning 2010 article in new york times, keurig has been publicly criticized environmental advocates , journalists billions of non-recyclable , non-biodegradable k-cups consumers purchase , dispose of every year, end in landfills. competing single-cup brands have single-serve pods recyclable, reuseable, or biodegradable.

the cup portion of k-cup made of #7 plastic, , although according company bpa-free, safe, , meets or exceeds applicable fda standards, cannot recycled in places. in few locations in canada #7 plastic recycled, small size of pods means can fall through sorting grates.

keurig green mountain – formerly green mountain coffee roasters (gmcr) – founded in 1981 , known historic environmentally conscious image, has been keurig s parent company since 2006. in late 2005 green mountain , keurig launched k-cup reusable , refillable pod, filled brand of coffee. product discontinued in august 2014 launch of keurig 2.0 brewing system, , 2.0 did not accept k-cup pods. consumer backlash prompted company announce in may 2015 bringing k-cup , making compatible 2.0 brewers.

in 2011 gmcr launched grounds grow on program, in office customers purchase recovery bins used k-cups, shipped keurig s disposal partner, composts coffee grounds , sends pods incinerated in waste-to-energy power plant. critics point out incineration produces airborne pollutants.

regarding potential recyclability, gmcr s vice president of sustainability stated in 2013 system has lot of pretty demanding technical requirements in terms of being able withstand amount of temperature , have kind of rigidity, , provide right kinds of moisture barriers , oxygen barriers , like. isn t simplest challenge. in 2015, keurig green mountain s chief sustainability officer stated every new k-cup spin-off product introduced since 2006 – including vue, bolt, k-carafe, , k-mug pods – recyclable if disassembled paper, plastic, , metal components. in 2014 sustainability report, released in february 2015, keurig green mountain re-affirmed priority company ensuring 100% of k-cup pods recyclable 2020.

in august 2014, canadian chain officemax grand & toy partnered new jersey company terracycle launch k-cup recycling program businesses in canada, using recycling box purchased businesses , shipped terracycle recycling when full. in february 2015 terracycle launched similar program residential use in u.s.: consumers purchase 0 waste box can hold 600 capsules, , when full box, has pre-paid ups label, shipped terracycle recycling.

legal , media issues

in 2014, following announcement of keurig 2.0 machines engineered lock out unlicensed pods, 7 competitors , number of purchasers filed lawsuits in canada , in various united states federal courts. complaints contain numerous allegations of anti-competitive actions designed drive competitors out of keurig s market.

to handle u.s. anti-competitive lawsuits, in june 2014 united states judicial panel on multidistrict litigation consolidated litigation 1 docket in southern district of new york, judge vernon s. broderick hearing consolidated case. case, of 2016 in process, has 46 plaintiffs, consisting of indirect purchasers, direct purchasers, , 2 competitors. common allegations of multidistrict litigation include claims keurig improperly acquired competitors, entered exclusionary agreements suppliers , distributors prevent competitors entering market, engaged in unwarranted patent-infringement litigation, , unfairly introduced product redesign locks out non–keurig branded cups.

the introduction of keurig 2.0 brewer sparked number of hacks , workarounds competitors , consumers in 2014. rogers family coffee, 1 of plaintiffs in anti-trust lawsuits, created freedom clip allowing unauthorized pods work in brewer. plaintiff, treehouse foods, claimed able produce own pods work in 2.0 system. canadian company, mother parkers tea & coffee, announced capsule compatible keurig 2.0.

in december 2014, company recalled 7 million of keurig mini plus brewing systems manufactured between december 2009 , july 2014 , sold in u.s. , canada. recall due burn injuries reported water overheating , spewing out of of machines, particularly if used brew more 2 cups in quick succession.

in november 2017, keurig tweeted had ended advertisements sean hannity s program on fox news, in reaction hannity s defense of senate candidate roy moore, had been accused of sexual misconduct against teenage girls. in response, videos of hannity s fans destroying keurig machines proliferated on internet. in internal e-mail, keurig ceo bob gamgort wrote how keurig handled situation highly unusual , gave unintended impression company had taken sides. gamgort announced overhaul of keurig s communications policies.

corporate governance

john sylvan , peter dragone founded keurig, inc. in 1992, , brought in dick sweeney co-founder in 1993. in 1995 larry kernan, principal @ mdt advisers – investment fund had contributed $1,000,000 company – became chairman of keurig; retained position through 2002. sylvan forced out of company in 1997, , dragone left few months later. sweeney stayed on company’s vice president of engineering; later became vice president of contract manufacturing , quality assurance.

nick lazaris president , ceo of keurig, inc. 1997 2006. keurig, inc. acquired green mountain coffee roasters in 2006; @ time, gmcr s founder bob stiller president , ceo. stiller stepped down in 2007, remained chairman until may 2012. lawrence j. blanford became green mountain coffee roasters president , ceo in 2007. brian kelley, chief product supply officer of coca-cola refreshments, became president , ceo of green mountain coffee roasters (now keurig green mountain) in december 2012. robert gamgort, had been ceo of pinnacle foods, replaced brian kelley keurig green mountain s ceo in may 2016 after kgm acquired investor group led private-equity firm jab holding company.