⚡ Get All Content for 20% Off ⚡

Home-Brewed Coca-Cola in 2015 Could Transform the Beverage Industry Coca-Cola has inked a 10-year partnership with Keurig-maker Green Mountain Coffee Roasters, and has also purchased a 10% equity stake in the company valued at $1.25 billion.

By Geoff Weiss

entrepreneur daily

Opinions expressed by Entrepreneur contributors are their own.

Come 2015, Keurig is aiming to put its home-brewing business on ice -- all with a little help from one of the biggest beverage brands on the planet, Coca-Cola.

In what could portend a tidal shift for the soda industry, Coke has signed a 10-year agreement with Keurig-maker Green Mountain Coffee Roasters, under which its illustrious portfolio of brands -- including Sprite, Fanta, Minute Maid and many more -- will be developed for use by a forthcoming Keurig Cold at-home beverage device.

Green Mountain will serve as the "exclusive partner for the production and sale of" Coke-branded "single-serve, pod-based beverages," the company said in a release. "The two companies also will explore other future opportunities to collaborate on the Keurig platform."

Related: Your Next Cocktail Could Be Concocted By This Robotic Bartender

Further cementing the partnership, Coca-Cola acquired a 10 percent ownership stake in Green Mountain -- or roughly 17 million shares -- in a deal valued at $1.25 billion. In response to the news, Green Mountain shares were up 25 percent on Thursday morning. Coke shares were up about 1 percent.

Competitor Sodastream was down as much as 13 percent in after-hours trading yesterday when news of the partnership first broke, but recouped all of its losses and was back in the green when trading opened on Thursday. This might've been due to chatter that, in response, Pepsi could snap up the Israel-headquartered company.

Though Pepsi's CEO Indra Nooyi told CNBC today that the speculation was "totally and completely untrue."

Related: Apple Surpasses Coke to Become World's Most Valuable Brand

The move by Coke "demonstrates our creative approach to partnerships and ability to identify and stay at the forefront of consumer trends driving the industry," the company's chairman and CEO, Muhtar Kent, said in a statement.

While the home brew paradigm revolutionized the coffee industry, Keurig is hurrying to bring the technology and open-architecture platform (in which anybody can create pods for use by the system) into other categories.

Last September, the company partnered with Campbell's Soup to unveil Fresh-Brewed Soup K-Cups that can be made by Keurig coffee brewers in a two-part preparation that includes a broth brewed over a packet of dried pasta and vegetables.

Related: Consumers Fed Up With Canned Soup?

Geoff Weiss

Former Staff Writer

Geoff Weiss is a former staff writer at Entrepreneur.com.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Side Hustle

The Remote Side Hustle a 43-Year-Old Musician Works on for 1 Hour a Day Earns Nearly $3,000 a Month: 'All From the Comfort of Home'

Sam Ziegler wanted to supplement his income as a professional drummer — then his tech skills and desire to help people came together.

Business News

Costco CFO Reveals Uncertain Fate of $1.50 Hot Dog and Soda Combo

CFO Richard Galanti reveals that the price will stay the same — but only "for a while."

Business News

The Most Unexpectedly Popular Side Hustle of the Decade Has Low Startup Costs and High Markups

A new report shows that vending machines are a popular investment — and the industry is set to grow up to $3 billion by 2031.

Marketing

Ever Wonder Why Certain Websites Rank Higher Than Yours? This SEO Expert Reveals The Secret to Dominating Search Results

It's often the smart use of SEO, now supercharged with AI, particularly in keyword optimization.

Business News

AI Is Impacting Jobs. Here Are the Gigs Affected the Most, According to an Analysis of 5 Million Upwork Postings

The researcher said in the report that freelance jobs were analyzed first because that market will likely see AI's immediate impact.

Leadership

Former Interrogator Shares 5 Behaviors Liars Exhibit and How to Handle Them

Five deceptive behaviors to look for and how to respond to those behaviors when you encounter them.