Coca-Cola said Tuesday it plans to increase its stake in single-cup coffee manufacturer Keurig to as much as 16 percent of the company.
Atlanta-based Coke acquired a 10 percent stake in Keurig Green Mountain for about $1.25 billion in February, an agreement in which the beverage giant was allowed to raise its stake to 16 percent over 36 months.
“The company has now entered into an Accelerated Purchase Agreement with Credit Suisse to acquire shares to reach that level,” Coca-Cola said in a statement Tuesday. “These incremental purchases demonstrate our continued belief that Keurig Green Mountain has substantial growth potential.”
Coke’s partnership with Keurig is designed to help the world’s biggest non-alcoholic beveragemaker build an at-home beverage system, a potentially lucrative business as Coca-Cola struggles with falling North American sales of its core soft drinks such as regular Coke and Diet Coke.