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Keurig recalls MINI Plus brewers on reports of spraying water, burns
Reuters
Dec. 23, 2014 10:55 am, Updated: Dec. 23, 2014 2:06 pm
NEW YORK - Keurig Green Mountain is recalling about 7.2 million single-serve brewing machines, warning that the machines could overheat and injure users by spraying hot liquids on them.
The affected machines are Keurig Mini Plus brewers made between December 2009 and July 2014 with the model number K10 and serial numbers starting with 31, the company said on its website.
The company said the machines could malfunction especially if used to brew more than two cups in quick succession. The recall affects 6.6 million machines in the United States and 564,000 in Canada.
'We believe the earnings impact specifically from the recall is unlikely to be material but that it could hurt brand perception, negatively impacting future brewer sales,” Mark Astrachan, an analyst at Stifel, Nicolaus & Co said in a note.
Astrachan called the timing of the recall 'notable in that it is two days before Christmas.” He recalled that in November, the company had noted a problem with the brewers on its earnings call about its fourth quarter ended Sept. 27.
Astrachan said company officials on the call disclosed a $22 million impact on sales related to returns of Mini Plus brewers.
Keurig has received about 90 reports of injuries caused by hot liquid escaping from the machines, the U.S. Consumer Product Safety Commission said. Health Canada said Keurig had recorded 17 incidents of minor burns in Canada.
The Keurig Mini Plus is a single-serve brewing machine that is used to prepare hot beverages such as coffee, tea and cocoa. The brewer retails for about $100 and is sold through retailers and Keurig's website.
Customers shop at the newly opened Keurig retail store in Burlington, Mass. November 8, 2013. (REUTERS/Brian Snyder)