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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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