Starbucks’ CEO tells Fox Business that the coffee chain is “ahead of schedule” with its major turnaround efforts.
Cambio Roasters has assembled a “dream team” with experience in the C-suites of some of the biggest names in the food and beverage industry with the goal of revolutionizing the world of single-serve coffee. The team at Cambio Roasters wants to help Americans get a better-tasting and more sustainable cup of coffee without drastically changing their routines or shrinking their wallets.
In February 2024, Neat Dr. Pepper announced the fourth-quarter 2023 report stated that about 40 million U.S. households had a Keurig brewing system, meaning millions of plastic K-Cups, also known as coffee pods, were being thrown into landfills. Cambio Roasters wants to put an end to massive waste by introducing an aluminum alternative.
KEURIG RECALLS MORE THAN 80,000 MCCAFÉ DECAFÉ K-CUP PODS ABOUT CAFFEINE MIX-UP
Cambio Roasters makes aluminum coffee pods. (Courtesy of Cambio Roasters)
Hartley was previously a C-suite executive at Keurig Green Mountain before its merger with Dr Pepper, where he helped drive the company’s growth. He co-founded Cambio Roasters with Ann Hutson, who has a background in strategic marketing and program management. The company’s leadership team also includes COO Mike Cunningham and CMO Dave Sachs, both former Keurig Green Mountain executives.
Hartley, Cunningham and Sachs all underlined the pride they take in the work they have done for Keurig, with Sachs saying they all remain “big fans” of the machine. However, they also noted an increase in consumer concerns about the amount of single-use plastic thrown away every day, as well as the consumption of microplastics.
Consumers are increasingly concerned about the presence of microplastics in food and beverages, especially when the items are exposed to heat while in plastic containers. However, the long-term health risks are still not fully understood.
Mohamed Abdallah, professor of environmental chemistry at the University of Birmingham in Britain, who studied the issue, told Time that he found “significant amounts of microplastics” when inspecting coffee made from pods. He confirmed the source of the microplastics by tracing them back to the plastic used to make the capsule, Time reported.
“I just don’t understand how plastic is going to be sustainable. I mean, people are just becoming much more conscious and concerned about the environment, concerned about what’s going into their bodies, and they’re looking for options,” Hutson told Fox Business.
From left to right: Mike Cunningham, COO of Cambio Roasters, CMO Dave Sachs, co-founder Ann Hutson and CEO and co-founder Kevin Hartley. (Courtesy of Cambio Roasters)
WHO START KEURIG’S K-CUP COFFEE POD?
Although consumers are concerned about microplastics, there are still aspects of single-use coffee pods that keep them coming back, and that’s what Cambio Roasters wants to preserve.
“What they love about it is that it’s perfect every time, it’s simple, it’s fast, there’s no mess, no cleanup, one cup at a time. We thought there had to be a better way to deliver these benefits to consumers. And we believe we’ve found one that delivers both a fresher cup of coffee and less waste,” said Sachs.
Cunningham explained that while the plastic used in coffee pods is theoretically recyclable, there are several issues that prevent it from being made into new pods or other items. First, the size of the pods means they often end up in the trash. Secondly, it is cheaper to buy virgin plastic than recycled plastic, making it less likely that a single-use coffee pod will turn into something else.
“You take aluminum and all those dynamics change,” Cunningham explained. He said that because the diameter of an aluminum pod increases when it is compressed, the pods are less likely to be lost in the process. Additionally, aluminum is more valuable to recyclers, making it more likely that they will work harder to get the pods recycled.
Cambio Roasters wants to offer Americans a better-tasting and more sustainable cup of coffee. (luza studios/iStock/Getty Images)
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The philosophy of reducing waste goes beyond eliminating plastic from the pods. Cambio Roasters leadership also recognizes that traditional drip coffee creates waste.
“The factual truth is that with a traditional drip coffee maker, the biggest consumer of coffee is the countertop,” Cunningham said. “It’s not just about the coffee, it’s about all the water that’s used to grow the coffee and all that. So we immediately believe that the single-serve coffee market has inherent value because you’re not wasting.”
Hartley also highlighted the company’s commitment to supporting struggling coffee farming families by dedicating 20% of profits to this cause. He said the initiative reflects a broader shift among consumers looking for products that match both their preferences and their values. Cambio Roasters expects this change to change the way Americans brew their morning coffee.
