Friday, Sep 19, 2014Friday, Sep 19, 2014
News
 

Coca-Cola takes $1.59b stake in Green Mountain

Published on Feb 6, 2014 7:48 AM
 
Green Mountain Coffee single-serve K-Cups are pictured in New York, in this file photo from May 3, 2012. Green Mountain Coffee Roasters Inc, maker of the popular Keurig single-cup coffee brewer, said on Wednesday that the Coca-Cola Co bought a 10 per cent stake in it for US$1.25 billion (S$1.59 billion) and would help launch Green Mountain's new cold drink machine planned for next year. -- FILE PHOTO: REUTERS

(REUTERS) - Green Mountain Coffee Roasters Inc, maker of the popular Keurig single-cup coffee brewer, said on Wednesday that the Coca-Cola Co bought a 10 per cent stake in it for US$1.25 billion (S$1.59 billion) and would help launch Green Mountain's new cold drink machine planned for next year.

Shares in Green Mountain soared 39.7 per cent to US$113.01 in extended trading, while those of its likely new rival, SodaStream International Ltd, tumbled almost 10 per cent to US$32.01.

Under their 10-year agreement, Green Mountain and Coca-Cola will collaborate on the development and introduction of Coca-Cola products on Green Mountain's upcoming in-home cold beverage machine that will serve both carbonated and non-carbonated beverages, including soft drinks, tea and juice.

The deal will make Green Mountain the exclusive partner for the production and sale of Coca-Cola's branded single-serve, pod-based cold beverages, the companies said.

 
If you are not a subscriber, you can get instant, unlimited access here