Club Coffee sues rival Keurig

Unlicensed pods at issue

A Canadian coffee roaster is suing Keurig Green Mountain, which makes single-serving pods for use in its own brand of brewing machines.

Keurig’s Canadian rival, Club Coffee, has had an alternative type of coffee pod for Keurig brewers since 2012.

Club Coffee alleges Keurig has attempted to reduce competition by making false statements and preventing its authorized distributors from dealing in unlicensed pods that are compatible with Keurig brewers.

The Toronto-based company also alleges Keurig’s licensing agreements with coffee roasters prevents them from dealing with rival pod makers such as Club Coffee.

The statement of claim filed by Club Coffee in Ontario Superior Court is seeking compensation, punitive damages and a court order to permanently bar Keurig from alleged violations of various federal competition, trademark and consumer laws.

Keurig spokeswoman Suzanne Du Long declined to comment on Club Coffee’s lawsuit, saying Keurig was yet to see the complaint, Reuters news agency reported.

Club Coffee’s suit comes more than a week after a U.S. federal judge refused to block Keurig from selling the Keurig 2.0 machine, following an injunction filed by coffee company Rogers Family Co.

Rogers claimed Keurig had violated antitrust laws by selling machines that accept only Keurig’s proprietary pods.

Keurig’s machines use pods filled with coffee, tea or hot chocolate powder to brew one-cup drinks at home. Pod sales accounted for 81 per cent of Keurig’s total revenue in its latest quarter, according to Reuters.