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Does Green Mountain's New Deal with Coke Leave SodaStream High and Dry?

By Mark Reeth and Michael Finarelli – Feb 8, 2014 at 7:30AM

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Shares of Green Mountain Coffee Roasters got a big boost on the news of its deal with Coke, but does that mean it's too late to invest in the company now?

Green Mountain Coffee Roasters' (GMCR.DL) investors had a pretty good week. Shares of the company skyrocketed after it announced a 10-year, $1.25 million partnership with Coca Cola (KO 0.88%) to develop an at-home cold beverage system. This is a big shift in strategy for Coke and a huge move for Green Mountain, but where does that leave the leader in that at-home beverage market, SodaStream (SODA)? For that matter, how is PepsiCo (PEP -0.11%) going to respond to this move by its largest rival?

In this segment of the Motley Fool's consumer goods show, Consumer Countdown, CG analyst Michael Finarelli joins host Mark Reeth to discuss what this deal means for Green Mountain and Coke, and where it leaves SodaStream and Pepsi.

Mark Reeth has no position in any stocks mentioned. Michael Finarelli has no position in any stocks mentioned. The Motley Fool recommends Coca-Cola, Green Mountain Coffee Roasters, PepsiCo, and SodaStream. The Motley Fool owns shares of Coca-Cola, PepsiCo, 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.

Stocks Mentioned

Coca-Cola Stock Quote
Coca-Cola
KO
$64.35 (0.88%) $0.56
PepsiCo Stock Quote
PepsiCo
PEP
$185.69 (-0.11%) $0.21
Keurig Green Mountain, Inc. Stock Quote
Keurig Green Mountain, Inc.
GMCR.DL
SodaStream Stock Quote
SodaStream
SODA

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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