Boston, MA 02/10/2014 (wallstreetpr) – The Coca Cola Company (NYSE:KO) is one of the world’s most iconic companies, with a market cap of more than $167.58 billion. The company has a history of investing in new and old ventures over the years. The Coca Cola Company is never shy from investing huge amounts of money in new ventures that have greater potential for success. Now, the company has said that it has an interest in Green Mountain Coffee Roasters Inc that is worth more than $1.3 billion. The Coca Cola Company Inc intends to buy up to 10 percent worth of shares in Green Mountain.
Green Mountain is well known in the US for being the maker of the Keurig one-cup coffee brewer. Green Mountain has been working hard to introduce a new cold drinking machine, and now that The Coca Cola Company (NYSE:KO) owns 10 percent stake in this company, it intends to help or contribute with the marketing aspect. Coca Cola intends to be heavily involved with the launch of this new cold drinking machine. This news has been of huge benefits to Green Mountain, which has seen its stock rise by a high of 42 percent, while that of its main rival has fallen during the same period.
The agreement between The Coca Cola Company (NYSE:KO) and Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) will last ten years. The two companies intend to collaborate in a number of joint ventures. At times, Coca Cola will help Green Mountain in marketing its new machines. On the other hand, Green Mountain will include Coca Cola’s products in its new cold drinking machine. Coca Cola intends to feature its carbonated and noncarbonated soft drinks on this new machine that Green Mountain is about to launch. Lovers of KO’s drinks will have the chance to sample its soft drinks, juices, and tea.
The Coca Cola Company (NYSE:KO) has entered into an agreement with a company that has been successful thus far. This agreement is not one-sided, as some may believe. Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) is also known all over the world, having sold more than 30 milling Keurig machines globally. Keurig machines are popular around the world and used in homes as well as offices, and any other place that the owner may wish to install it. To its credit, Coca Cola has allowed Green Mountain the chance to sign other similar agreements with other makers of cold drinks, who are direct competitors of KO.
Green Mountain’s biggest rival has been SodaStream International Ltd. It is only last year when there were reports indicating that PepsiCo Inc intended to buy SodaStream, although the former later denied that such plans existed. Therefore, it is interesting to note that Coca Cola has given Green Mountain the chance to sign new agreements with companies such as PepsiCo bearing in mind that it has been linked with SodaStream. Coca Cola hopes that the new deal with Green Mountain will help it to access new business opportunities that increase its competitive edge.
This deal shows once again that The Coca Cola Company (NYSE:KO) has the ability to notice existing and potential opportunities that will increase its market share, and allow it the chance of penetrating newer markets. Such deals indicate or offer proof of just how awake Coca Cola has been all along, and never misses out on opportunities that bring huge benefits both in the short and long-term.
