Green Mountain developed two blends for Costco's Kirkland Signature lines, a lighter breakfast blend and a darker roast.
Costco will begin selling the single-serve coffee pods, for use in Green Mountain's Keurig single-cup brewing system, in mid-December.
Green Mountain pioneered the single-serve coffee in the U.S. It has partnered with a number of companies, such as Tully's Coffee, Newman's Own, and Caribou Coffee (Nasdaq: CBOU ) .
The company has struggled, however, as its patents expire and competitors release their own single-serve coffee makers. That includes Starbucks (Nasdaq: SBUX ) .
Shares of Green Mountain Coffee Roasters had fallen 65 percent since its high this year of $69.75 in February.
Shares of Green Mountain jumped $2.10, nearly 9 percent, to $26.28, after it announced the agreement with Costco, which is the largest wholesale club in the nation.