As part of the deal, Coca-Cola is buying a 10 percent stake in GMCR, a deal worth approximately $1.2 billion at the current share price. From Green Mountain:
“With The Coca-Cola Company as a global strategic partner in our multi-brand at-home Keurig Cold beverage system, we believe there is significant opportunity to premiumize and accelerate growth in the cold beverage category by empowering consumers with an innovative, convenient way to freshly prepare their favorite cold beverages at the push of a button,” said Brian P. Kelley, President and CEO of GMCR. “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, quoted above, actually came to Green Mountain from Coca-Cola less than 14 months ago. He was president of the global beverage company’s North American business. The move comes the same day GMCR announced record quarterly sales of Keurig home brewing systems. During a 4 percent net sales increase in the last quarter representing an additional $1.4 billion, the company sold a remarkable 5.1 million Keurig units.
Based on the strength of the Keurig brand and sales, Green Mountain plans a corporate name change to Keurig Green Mountain.