Description: They’ve transformed the coffee world, these single-serve brewing units like Kuerig and Tassimo. And now a Toronto company, Club Coffee LP, is suing Kuerig Green Mountain Inc for alleged anti-competitive practices. Club Coffee makes its own pods which are compatible with the Kuerig machines. And the patent on the K-Cup technology has expired. But Club Coffee maintains Kuerig is using its influence with retailers to close the lid to its coffee makers to everything but official K-Cup brands.
Source: Financial Post.com
Date: October 1, 2014
Questions for Discussion:
1) Are you a fan of the K-Cup? Why? Has the K-Cup changed your morning coffee routine as you head out for the day’s first class?
2) If you were an executive with Club Coffee, what strategies might you pursue to make your product successful?
3) What accounting issues are raised by a lawsuit like this? How would Club Coffee disclose it in its financial statements? What about Kuerig?