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A new beverage battle is brewing.

Green Mountain Coffee Roasters and the Coca-Cola Co. on Feb. 5 announced a strategic partnership to develop a new home beverage system called Keurig Cold, a move that suggests the companies are thirsty for SodaStream International’s share of the in-home soda making market.

In addition to a 10-year agreement to collaborate on the project, Atlanta-based Coca-Cola will purchase a 10% minority equity position in Green Mountain for approximately $1.25 billion. The investment is expected to close in March, subject to customary closing conditions and regulatory approvals.

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