Coca-Cola Forward Integrating By Establishing the K-Cup
In a forward integration move, Coca-Cola recently signed a 10-year partnership with Green Mountain Coffee Roasters, maker of the Keurig single-serve coffee maker, to offer for the first time a Coca-Cola drink through a K-Cup. Coca-Cola thus plans to sell coke through the at-home beverage system Keurig K-Cup. With the partnership, Coca-Cola also acquired 10 percent of the Green Mountain company for about $1.25 billion. Green Mountain has a similar partnership with Campbell Soup to brew a cup of chicken broth in a K-Cup.
Source: Mike Esterl and Annie Gasparro, “Coming Soon: The Coca-Cola K-Cup,” Wall Street Journal (February 6, 2014), p. B1.
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