How Coca-Cola Bought 10% of Green Mountain Coffee

When Americans started drinking less soda year after year, Coca-Cola needed a new way in. For eight straight years, carbonated soft drink consumption had been falling in the US — a major problem for the world’s biggest soda maker. So when an opportunity arose to move into the fast-growing single-serve coffee market with a path to cold drinks, Coca-Cola moved decisively.

Coca-Cola spent $12.5 billion to buy a 10% stake in Keurig Green Mountain (now known as Green Mountain Coffee), the company behind the popular Keurig single-cup coffee machines. The move gave Coca-Cola a direct line into the booming single-serve coffee segment and a future route into cold beverages.

Why Coca-Cola Invested in Green Mountain Coffee

The investment wasn’t random. By 2014, carbonated drink sales in the US had dropped for eight consecutive years. Coca-Cola was under pressure to find new growth areas. At the same time, Green Mountain Coffee — manufacturer of the Keurig single-cup brewing system — had been expanding its vision beyond hot coffee. In September 2013, the company announced plans for a “Keurig Cold” system designed to deliver not just coffee, but also carbonated drinks, juices, flavored waters, and similar beverages. That caught Coca-Cola’s attention.

What the Partnership Includes

The deal included plans for the Keurig Cold machine to offer Coca-Cola products such as Sprite, Fanta, and Minute Maid (marketed as in China), although specific drink SKUs were not disclosed at launch. Although the partnership may have seemed unlikely on the surface, both companies stood to gain significantly. For Green Mountain Coffee, which was just starting to grow its international footprint, the deal meant access to Coca-Cola’s massive global distribution network and well-known brand portfolio. For Coca-Cola, the deal opened a new channel to engage consumers through single-serve technology.

The State of the Single-Cup Coffee Market

The investment also highlighted the rising popularity of single-serve coffee systems. According to a recent analysis by Bank of America, the dollar share of single-serve coffee in the US market had risen sharply from 8% to 30% over just three years. While the Keurig Cold system was initially planned as a standalone machine separate from the existing Keurig hot brewers, the company’s CEO stated that future iterations could include machines capable of brewing both hot and cold beverages.

Frequently Asked Questions

How much did Coca-Cola pay for its stake in Green Mountain Coffee?

Coca-Cola invested $12.5 billion to acquire a 10% ownership stake in Green Mountain Coffee (maker of Keurig machines). This was part of a strategic move to enter the growing single-serve coffee market and eventually expand into cold beverages.

What is the Keurig Cold system?

The Keurig Cold system was an upcoming product announced by Green Mountain Coffee in 2013, designed to dispense cold drinks including carbonated beverages, juices, and flavored waters — similar to how Keurig machines brew hot coffee. It was intended to be a standalone machine, not combined with the existing hot brewers at launch.

Which Coca-Cola products were planned for the Keurig Cold machine?

The partnership included plans to offer Coca-Cola beverages like Sprite, Fanta, and Minute Maid (known as in China) through the Keurig Cold system, though specific product SKUs were not confirmed at the time of the announcement.

Why did Coca-Cola invest in a coffee company?

Coca-Cola invested in Green Mountain Coffee to diversify beyond declining soda sales. With US carbonated soft drink consumption dropping for eight straight years, the investment gave Coca-Cola access to the growing single-serve coffee market and a future pathway into cold beverages via the Keurig Cold machine.

What benefits did Green Mountain Coffee get from Coca-Cola?

Green Mountain Coffee gained access to Coca-Cola’s extensive global distribution network and powerful brand portfolio, which helped support its international expansion efforts. The partnership also aligned with its plans to grow beyond hot coffee into cold beverage systems.

Recommended FrontStreet Beans for Cold Brew

For coffee lovers exploring cold beverages like those planned for Keurig Cold, FrontStreet Coffee’s Ethiopia Yirgacheffe offers bright citrus and floral notes, while Kenya Little Tomato brings juicy acidity with tart berry flavors — both ideal for cold brew or sparkling coffee applications. Freshly roasted within 5 days · Orders placed before 17:00 ship the same day · Next-day delivery across most of Guangdong Province.