Business

Coca-Cola buys 10 percent stake in Vermont-based Green Mountain

Green Mountain Coffee single-serve K-Cups are pictured in New York, in this May 3, 2012 file photo. Green Mountain Coffee Roasters Inc. reported quarterly earnings May 8, 2013 that blew past Wall Street estimates, and raised its full-year outlook, helped by strong sales of its K-Cup packages. REUTERS/Brendan McDermid (UNITED STATES - Tags: FOOD BUSINESS)
Green Mountain Coffee single-serve K-Cups.Credit: Brendan McDermid/REUTERS/Files 2012

The Coca-Cola Co. is buying a 10 percent stake in Green Mountain Coffee Roasters Inc. as part of a collaborative agreement that would bring its drinks into a new self-serve market.

The deal hinges on Green Mountain launching a single-serve beverage system, similar to what it uses for coffee, for cold beverages. It would make soft drinks, juice drinks and more, accessible to consumers with the touch of a button. It is expected to be available in Green Mountain’s 2015 fiscal year.

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Coca-Cola and Green Mountain said Wednesday they have signed a 10-year agreement. As part of that deal, Coca-Cola will acquire nearly 16.7 million new Green Mountain shares for $1.25 billion.

Green Mountain’s shares soared 30 percent in after-hours trading.

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