Green Mountain Coffee and Coca Cola join forces.

Ray Williamson Posted on: 2014-02-06 12:00 AM

Coca-Cola Co. is following the trend of coffee companies and is planning to come into your home one glass at a time. It must be a good idea because they have just invest $1.25 Bn to purchase a 10% stake in Green Mountain Coffee Roaster in order to jointly develop an at-home cold beverage dispenser like the Keurig machines that are starting make entry into homes around the world.
 
“With The Coca-Cola Company as a global strategic partner in our multi-brand at-home Keurig Cold beverage system,” said Green Mountain CEO Brian Kelley in a statement, “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.”
 
Green Mountain currently produces Keurig Single Cup Brewing systems which allows users to make just one cup of hot coffee, rather than a whole pot. The Keurig Cold will similarly be single serve but is still under development. Green Mountain expects to make the new gadget available to consumers in 2015.
 
Coke’s CEO Muhtar Kent added, “Pairing The Coca-Cola Company’s brand leadership and global footprint with GMCR’s innovative technology, together we will be able to capitalize on the many exciting growth opportunities in the single-serve, pod-based segment of the cold beverage industry.”
 
The announcement has investors of Soda Stream selling the stock.  Soda Stream closed down by more than 10% to 32.35.
 
We expect that this is the another major step in the expansion into  the home single serving beverage market.