Coca-Cola Places Bull’s-eye on Sodastream

The beverage giant is buying a 10 percent stake in Green Mountain Coffee

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Coca-Cola is spending $1.25 billion to buy 10 percent of Green Mountain Coffee Roasters Inc., and the two companies will collaborate on making the latter’s Keurig Cold system a direct competitor to the popular Sodastream at-home soda maker.

“Under the global strategic agreement, GMCR and The Coca-Cola Company will cooperate to bring the Keurig Cold™ beverage system to consumers around the world,” the companies announced Wednesday, the Wall Street Journal reports. Shares of Green Mountain skyrocketed more than 30 percent on the news.

Stock in Sodastream, which has dominated the at-home carbonated beverage maker market, were down eight percent in after-hours trading.