Coca-Cola, Green Mountain to Launch Keurig Cold Beverage System

The Coca-Cola Co. and Green Mountain Coffee Roasters Inc. (GMCR) have signed a 10-year agreement to collaborate on the development and introduction of Coca-Cola’s global brand portfolio for use in GMCR’s Keurig Cold at-home beverage system. 

Under the global strategic agreement, GMCR and Coca-Cola will cooperate to bring the Keurig Cold beverage system to consumers worldwide. In an effort to align long-term interests, the companies also entered into an agreement whereby Coca-Cola will purchase a 10 percent minority equity position in GMCR.

As part of the strategic collaboration, GMCR will be Coca-Cola’s exclusive partner for the production and sale of Coca-Cola Co. branded single-serve, pod-based cold beverages. The two companies also will explore other future opportunities to collaborate on the Keurig platform.

“With The Coca-Cola Co. 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 Co.’s unparalleled brand, distribution and marketing strengths with GMCR’s innovative technology and beverage system expertise.”

The investment is expected to close in March, subject to customary closing conditions, including receipt of required regulatory approvals.

GMCR’s Keurig Cold single-serve beverage system is currently under development, with expected availability in GMCR’s fiscal year 2015. Keurig Cold will use precisely formulated single-serve pods to dispense freshly made cold beverages, including carbonated drinks, enhanced waters, juice drinks, sports drinks and teas in consumers’ homes. The cold system is expected to be a similarly open-architecture platform like the Keurig hot system.