Morgan Stanley Considers Potential Impact of Coca-Cola's Agreement with GMCR

In a report published Thursday, Morgan Stanley analyst Dara Mohsenian reiterated an Equal-Weight rating on

. In the report, Morgan Stanley noted, “Coke signed a 10-year agreement with GMCR to collaborate on the development and introduction of Coca-Cola products for use in GMCR's Keurig Cold at-home beverage system globally. With the agreement, KO purchased ~$16.7M newly issued GMCR shares for ~$1.25B ($74.98/share), representing a 10% stake in the company. The deal is expected to close in March of 2014. GMCR will be KO's exclusive partner for the production of Coca-Cola branded single-serve, pod-based cold beverages, and the companies stated they will explore future collaboration opportunities in the Keurig system. The agreement does not preclude GMCR from having other beverages on its platform.” The Coca-Cola Company closed on Wednesday at $37.61.