The first bite rarely sates a giant. A second helping most always follows.
The Coca-Cola Co. announced Tuesday that it will raise its stake in Keurig Green Mountain, Inc. from 10 percent to 16 percent. The raise will make Coke the largest shareholder of the K-Cup coffee brand.
Through an accelerated purchase agreement with Credit Suisse, Coke will own approximately 26 million shares of Keurig. Coke previously owned 16.7 million shares.
“These incremental purchases demonstrate our continued belief that Keurig Green Mountain has substantial growth potential,” Coke said in an emailed statement, according to Reuters.
In February, Coke announced that it had acquired a 10 percent minority stake in what was then called Green Mountain Roasters. About one month later, the company changed its name to Keurig Green Mountain, Inc., but retained its ticker symbol of “GMCR” on the NASDAQ stock exchange.
As news broke of Coke’s intent to raise its stake, Keurig shares increased Tuesday morning by 10 percent to $121.79.
Among other collaborations, the partnership will lead to to the 2015 launch of the Keurig Cold system, which will provide consumers with the ability to create a variety of cold beverages — carbonated drinks, enhanced waters, juices, sports drinks and teas — from the comfort of their kitchen.