Open Happiness: Coca Cola can now be made at home

On Wednesday, Green Mountains Coffee Roasters announced that Coca Cola will buy 10% stake by buying 16.7 million shares in GMCR for USD 1.25Billion.

The companies have signed a 10year strategic alliance to bring Keurig Cold Beverage System around the world. In return for the investment, Coke would help launch Green Mountain’s new Keurig’s home-beverage machines planned for release in October 2015 (by being the first company to feature its brand). While Green Mountain —becomes the official manufacturer of Coke’s single-serving cold beverages. It means that based on its famous Keurig pod-based system Coca Cola and its drink brands such as Fanta, Sprite, Barqs and Powerade will be making an appearance in the new machines and can now be made at home. It’s a thick blow for Sodastream, which sells DIY carbonation machines and flavor syrups. Keurig’s Cold Beverage machines will also use formulated single-serve pods to dispense cold beverages including carbonated drinks, enhances waters, juice, sports drinks and teas.

Coca Cola

Green Mountains have also done deals with Starbucks, Dunkin’ Donuts and Campbell’s Soup. The Keurig Home-Beverage system is currently under development and is expected to launch by GMCR’s fiscal year 2015 which begins in October. Green Mountains is also set to launch a new hot drink brewing system this year called Keurig 2.0 which will use both single K-cup and larger sized K-carate packs that brew 28 ounces of coffee. The two companies will also explore other future opportunities to collaborate on the Keurig platform.

Last year PepsiCo was in talks for striking a similar rumored deal with Sodastream. Given Coke and Pepsi’s cola legendary wars PepsiCo may want enter into a proposition with Sodastream.

Coca Cola shares were up by 1.4% at $28.12. Shares of Green Mountains soared 42% to USD 114.85 in after-trading hours while shares of rival Sodastream plummeted by 11%.

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Christy Gren
Christy Gren is an Industry Specialist Reporter at Industry Leaders Magazine; she enjoys writing about Unicorns, Silicon Valley, Startups, Business Leaders and Innovators. Her articles provide an insight about the Power Players in the field of Technology, Auto, Manufacturing, and F&B.

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