Coca-Cola Is Now Keurig Green Mountain's Largest Shareholder
When Coca-Cola (NYSE: KO) purchased a 10.1 percent stake in Keurig Green Mountain (NASDAQ: GMCR) in February, the iconic global beverage company secured a fast-growing partner for consumers to enjoy Coca-Cola products in a brand new way.
Keurig and Coca-Cola established into a long-term agreement in which Keurig will be Coca-Cola's exclusive partner for “the production and sale of The Coca-Cola Company-branded single-serve, pod-based cold beverages” for use in the Keurig cold brewing machine, currently in production.
Coca-Cola revealed on Monday evening that it had raised its stake in Keurig to 16 percent, the maximum position it can assume as per the original agreement in February.
According to an SEC filing, Coca-Cola owns 26,037,771 shares in Keurig, up from 16.7 million as of February.
Shares of Keurig were trading higher by 5.32 percent at $116.60 in the pre-market trading session, while shares of Coca-Cola were trading slightly lower by 0.07 percent at $40.79 in the pre-market session.
Shares of Keurig are currently trading up 10 percent at $122.32, while Coca-Cola is up about 0.88 percent at $41.18.
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.