Coca-Cola takes $1.59b stake in Green Mountain
(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.