Keurig Dr Pepper and Anheuser-Busch InBev are moving forward with a joint venture intended to boost sales as both companies see their own falter.
The two companies created the Drinkworks machine, an imitation of Keurig's well-known coffee maker intended to make cocktails. In November, they launched a pilot in St. Louis. Now they're planning on rolling it out to Missouri, Florida and California, The Wall Street Journal reported.
The joint venture comes as both Keurig and AB InBev are trying to address their own struggling sales. The at-home coffee giant's sales of its brewers and single-serve pod declined 0.5 percent during its fourth quarter, while Budweiser's parent company must adapt to changing consumer tastes. Last year, unit case volume of beer declined by 1.5 percent, according to IWSR data. Spirits, on the other hand, are growing.
AB InBev is in talks to license spirits brands for the appliance since it doesn't own any large ones, according to the Journal. Pod flavors also include three brands of beer and cider.
The machine retails in St. Louis for $399, but is available for preorder at $299. Its liquid-filled pods, sold in packs of four, are available for $15.99 for most cocktails, like margaritas and mojitos. The appliance adds water and carbonation to the pods to create the alcoholic drinks. Each pod has about a shot of alcohol, plus flavorings.
Keurig previously teamed up with Coca-Cola for a pod-based appliance that allowed users to make their own soda, but gave up on the machine less than a year after its launch.
Pernod Ricard, the second largest spirits company in the world, is planning on launching its own bartending assistant Opn this year, but users will have to mix their drinks themselves.
Officials at Keurig Dr Pepper, AB InBev and Drinkworks weren't immediately available for comment.
Read more about the joint venture between Keurig Dr Pepper and Anheuser-Busch InBev here.