Jayson Derrick, Benzinga Staff Writer
On Wednesday, Green Mountain Coffee Roasters (GMCR) announced that it signed a ten year agreement with Coca-Cola (KO) to collaborate on the development and introduction of the Coca-Cola's global brand portfolio for use in Green Mountain's upcoming Keurig Cold beverage system.
Green Mountain will be Coca-Cola's exclusive partner for the production and sale of Coca-Cola single-serve, pod-based cold beverages. The two companies will explore other potential opportunities for the Keurig platform.
"With The Coca-Cola Company as a global strategic partner in our multi-brand at-home Keurig Cold beverage system, we believe there is significant opportunity to premiumize and accelerate growth in the cold beverage category by empowering consumers with an innovative, convenient way to freshly prepare their favorite cold beverages at the push of a button,” said Brian P. Kelley, President and CEO of GMCR. “This global relationship combines The Coca-Cola Company's unparalleled brand, distribution and marketing strengths with GMCR's innovative technology and beverage system expertise.”
“Our 2020 Vision calls for decisive and timely action to continuously improve and evolve our global system to best serve our customers and consumers around the world,” said Muhtar Kent, Chairman and Chief Executive Officer, The Coca-Cola Company. “This agreement demonstrates our creative approach to partnerships and ability to identify and stay at the forefront of consumer trends driving the industry
As part of the agreement, Coca-Cola will acquire close to 17 million newly issued shares in Green Mountain for approximately $1.25 billion, which represents an approximate ten percent ownership in Green Mountain. The newly issued shares have been priced at $74.98.
Shares of Green Mountain were initially halted following the news release.