Dive Briefing:
- Kellanova is launching Eggo Coffee in collaboration with Two Rivers Coffee. The beverage, which will be available in stores and e-commerce channels in mid-August, will be made in a Keurig K-Cup format.
- This product comes in five flavors. Maple Syrup Eggo, Vanilla Eggo Coffee, Cinnamon Toast Eggo, Blueberry Eggo, Chocolate Chip Eggo.
- Here are our forays into the coffee industry: Kellanova We aim to grow our business by launching collaborative products for major brands.
Dive Insight:
Eggo, which resembles a waffle topped with syrup, joins other CPG food brands that have entered the coffee market, including M&M's and Twix.
The drink is designed to be perfect for breakfast, Sam Blaney, Two Rivers Coffee's marketing director, said in a statement.
“Many of us have fond memories of eating Eggo waffles as kids, and now with Eggo Coffee we have a whole new way to experience that nostalgia with a caffeine boost,” Blaney said. “I’m confident this product will fly off the shelves.”
Two Rivers also launched coffee products specifically in the Keurig K-Cup format. Other brands include Friendly's, Cold Stone Creamery, and Brooklyn Bean Roastery.
The coffee category has proven to be increasingly lucrative. It is expected to be worth $93 billion this year, according to Statista. Home coffee is expected to grow at a compound annual growth rate of 3% through 2029. By entering the coffee market, one of Kellanova’s core products, Eggo, will appear in a buzzy adjacent category, not just waffles, helping to strengthen its brand identity.
CEO Steve Cahillane said in Ego's latest earnings report, released in May, that distribution revenue has grown in recent months.
While big brands like Starbucks, Nescafé and Folgers already dominate the market, several brands have entered the home coffee market in the past two years.
Last year, Kraft introduced a variety of IHOP coffee flavors inspired by the pancake restaurant’s products, including Chocolate Chocolate Chip and Buttery Syrup. In January, actor Robert Downey Jr. teamed up with Eos lip balm maker Craig Dubitsky to launch a coffee line called Happy.
Kellanova The Eggo brand is no stranger to expanding into new categories. Last year, that Eggo Brunch in a Jar debuts Siffin'Cream' is a liqueur with an alcohol content of 20%.
