Green Mountain Soars After Partnering With Coca-Cola

By Alison Southwick and Jason Moser – Feb 6, 2014 at 8:15PM

NYSE: KO

Coca-Cola

Market Cap

$265B

Today's Change

(1.50%) $0.91

Current Price

$61.55

Price as of April 24, 2024, 4:00 p.m. ET

Shares of Green Mountain Coffee Roasters are up enormously today, on the news that it would be entering into a 10-year partnership with Coca-Cola. Does this spell disaster for the do-it-yourself soda machine maker SodaStream?

In this video from Thursday's edition of Investor Beat, host Alison Southwick and Motley Fool One analyst Jason Moser dig into the top business stories from today's market for Foolish investors.

Green Mountain Coffee Roasters (GMCR.DL) shares exploded skyward today, up nearly 30% on news that it has signed a 10-year partnership with Coca-Cola (KO 1.50%). What the ultimate fruit of this partnership will be is not yet known, but many are speculating that the product could allow consumers to make their own soda at home in a similar fashion to how Green Mountain's current Keurig machine and K-cups work with coffee. If true, this could be very bad news indeed for homemade soda machine maker SodaStream (SODA). In the lead story on today's Investor Beat, Jason discusses how Coca-Cola's investment in Green Mountain really validates this market, and tells investors which of the three players here is the one he'd like to own today.

Alison Southwick has no position in any stocks mentioned. Jason Moser has no position in any stocks mentioned. The Motley Fool recommends Coca-Cola, Green Mountain Coffee Roasters, and SodaStream. The Motley Fool owns shares of Coca-Cola and SodaStream. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.