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Keurig launches Kold machine to make soda pop at home

You might be hard-pressed to remember the last time you cracked open a can of soda and thought to yourself: 'There's gotta be an easier way to drink this' yet the problem that probably doesn't exist is now the project that Keurig is pinning its future on.

Company that created single-serve coffee market turns its focus to cold drinks

Keurig Kold--a new machine that used flavour pods to serve up cold drinks--was a complete bust with customers. (Keurig Green Mountain)

You might be hard-pressed to remember the last time you cracked open a can of soda and thought to yourself: "There's gotta be an easier way to drink this."

Yet the problem that probably doesn't exist is now the project thatKeurigis leaning its hopes on.

Nearly 18 years after the company revolutionized how coffee drinkers prepare their morning cup of joe,Keurigis searching for its next stage of growth amid dwindling sales of theKeurigbrewer.

That's whereKeurigKold comes in.

The cheekily misspelled cold drink machine, which launched in Canadaon Tuesday, promises to serve up "fresh" glasses of popular soft drinks and flavoured waters using a variation of the same K-cup technology from its coffee machines.

But there are several other distinct differences with the new cold drink-maker in particular its lack of convenience and the price.

$400price

At a hulking 10.75 kilograms, theKeurigKold machine weighs almost as much as a small microwave oven and sells at more than twice the cost. Its suggested retail price is $399.99 in Canada.

Each K-cup makes 8 ounces of the beverage, a convenient serving, but that amounts to about $1.30 to $1.50 per glass. Simple math says that's more expensive than a 12-ounce can of soda.

"It's for the one that really wants to have a premium experience," saidKeurigCanada president Stephane Glorieux when asked about the hefty costs that come with buying aKeurigKold. "Although it seems very simple, there's a ton of technology behind this."

TheKeurigKold is more complex than its predecessor, which boils up some water and shoots it through a plastic pod and into a cup.

Inside the Kold machine, an "aerospace-inspired" contraption of thermoelectric conductors and a small propeller draw water from a reservoir up into the machine and help cool it to about four degrees Celsius, meaning ice is unnecessary.

Then the machine fires the liquid into a larger version of the K-cup, which stores both the flavour syrup and in the case of some beverages a new carbonated bead technology that adds the fizz.

90-second cycle

The end result is a tasty and sweet treat that for a brief moment distracts from the reality that none of this process is really needed for a glass of soda or flavoured water.

Keurigbuilt its reputation as a symbol of speed and convenience with machines that tucked into the corner of kitchen counters and eliminated the need to brew an entire pot of coffee just for one or two good cups.

The new machine is almost an antithesis to the company's early appeal. Aside from its large size, theKeurigKold takes 90 seconds to make a beverage, which is a lot longer than it takes to pry open a can of Coke.

KeurigKold is a direct play at a corner of the drinks market dominated by Sodastream, which uses CO2 cannisters to carbonate water and create flavoured sodas.

Sodastream does not have partnerships with the world's major soft drink makers, butKeurigcounts Coca-Cola as its biggest outside partner, which means Coke, Coke Zero, Diet Coke and Sprite are among its 13 flavours in Canada.

KeurigKold launched in the U.S. earlier this fall, but in Canada it will only be available online through theKeurigwebsite and a couple other retailers during the crucial holiday season. The company said it plans to be in Canadian retail stores next year.

The approach suggests that evenKeurigexecutives aren't entirely convinced the machine is going to be a hot seller.

"It's going to be a very structured approach to make sure that we build the install base," Glorieux said as he described the rollout. "This is not going to be a wild fire."

Last week,KeurigGreen Mountain Inc. chief executive Brian Kelley told investors the new machine is still in its infancy.

"We know that the first product we put out in a new technology is never going to be perfect," he said.

"Consumers want it to be smaller. They want it to be less expensive. They want to have more sizes of drinks available. They want a broader selection of drinks. They want all of the brands they are used to drinking, just like they have inKeurighot."