Coca-Cola to purchase minority stake in GMCR for $1.25bn

American multinational beverage firm Coca-Cola has signed a deal to purchase a 10% minority stake in Green Mountain Coffee Roasters (GMCR) for $1.25bn.

The parties have also entered into a global strategic agreement to develop and launch Coca-Cola’s brand portfolio for use in GMCR’s upcoming Keurig Cold beverage system.

GMCR will be Coca-Cola’s exclusive partner for the production and sale of the latter’s single-serve, pod-based cold beverages.

In addition, the two companies will explore opportunities to collaborate on the Keurig platform.

Subject to customary closing conditions, the transaction is expected to be completed in March 2014.

GMCR president and CEO Brian P Kelley said that with Coca-Cola as a global strategic partner in the multi-brand at-home Keurig Cold beverage system, the company believes there is significant opportunity to accelerate growth in the cold beverage category.

"This global relationship combines The Coca-Cola Company’s unparalleled brand, distribution and marketing strengths with GMCR’s innovative technology and beverage system expertise," Kelley added.

Coca-Cola chairman and CEO Muhtar Kent said that the agreement demonstrates the company’s creative approach to partnerships and its ability to identify and stay at the forefront of consumer trends driving the industry.

"By pairing The Coca-Cola Company’s brand leadership and global footprint with GMCR’s innovative technology, together we will be able to capitalise on the many exciting growth opportunities in the single-serve, pod-based segment of the cold beverage industry," Kent added.

The Keurig Cold single-serve beverage system is currently under development and is expected to be available in GMCR’s fiscal 2015.

The system will use formulated single-serve pods to dispense cold beverages, including carbonated drinks, enhanced waters, juice drinks, sports drinks and teas.

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Image: As per the deal, Coca-Cola and GMCR will explore opportunities to collaborate on the Keurig platform. Photo courtesy of Business Wire / Green Mountain Coffee Roasters, Inc.