The Coca-Cola Co. is buying a 10% stake in Green Mountain Coffee Roasters as part of a collaborative agreement that would bring its drinks into a new self-serve market.
The deal hinges on Green Mountain launching a single-serve beverage system, similar to what it uses for coffee, for cold beverages. It would make soft drinks, juice drinks and more, accessible to consumers with the touch of a button. It is expected to be available in Green Mountain's 2015 fiscal year.
Coca-Cola and Green Mountain said Wednesday they have signed a 10-year agreement. As part of that deal, Coca-Cola will acquire nearly 16.7 million new Green Mountain shares for $1.25 billion.
Green Mountain's shares soared 30% in after-hours trading.