The soda pop giant Coca-Cola has decided to look into a new market and is planning to begin to let customers start making its sodas and other drinks right in their own home. The biggest beverage maker on Earth stated on Wednesday that it plans to purchase ten percent of Green Mountain Coffee, Inc. for the price of $1.25 billion as a portion of an arrangement to bring its products to the extremely fast growing at-home marketplace. Green Mountain is best known for the single-serve coffee packets, but has begun development on a machine that will produce cold drinks.
The transaction comes just as Soda Stream has made a forceful push to create its at-home carbonation apparatuses more of a regular feature in American kitchens. The Israel business has hyped its machines as being an economical, more ecologically friendly substitute to buying either Coke or Pepsi products. When the deal was announced with Coca-Coal and Green Mountain, it caused investors to send Green Mountain’s stock to go through the roof. However, Soda Stream’s fell greatly after the deal was publicized.
Coca-Cola’s choice to side with Green Mountain comes just as the consumption of soda in the United States and also many other developed nations are on a downward swing. This is due in part to the rising number of selections that individuals now have in the beverage lane.
The Keurig Cold machine that Green Mountain is working on is expected to be ready and come out to the public by the company’s 2015 economic year. The business states that the Keurig Cold will allow people to not only make Coca-Cola at home, but also numerous other types of sodas and also non-carbonated drinks such as teas and juices by using the packets that are similar to what Green Mountain uses in their coffee brewers. This means that customers will be able to also make their own Hi-C, not just home-bubbled Sprite or Diet Coke. Being familiar with the soft drinks that will be available is definitely going to be the major selling point. This is the same as it is with large coffee companies being available in the K-cup cases. Customers will also be able to make sports drinks and also other beverages with only the single touch of a button.
The two companies stated that they signed a ten year contract. To go along with that deal, Coca-Cola will obtain nearly 17 million new Green Mountain shares of stock. Coca-Cola shares had risen one percent to be at $37.98. Green Mountain’s shares had climbed through the roof to over 30 percent in after hours trading. Soda Stream shares found themselves down over nine percent at $32.40.
There had been discussion back in June of 2013 of Pepsi Co thinking about buying part of Soda Stream. However, that talk was quickly refuted by that soda giant at that time. But now that Coke has went through with this deal with Green Mountain, the Pepsi Co might just want to reassess their decision on what they chose to do. Coca-Cola is planning to begin to let customers start making its sodas and other drinks right in their own home.
By Kimberly Ruble