Keurig Green Mountain signs deal to make Kraft coffee pods

K-cup coffee pod maker Keurig Green
Mountain Inc said it signed a deal to make and sell Kraft Foods Group
Inc’s coffee in packs compatible with its brewing machines.

Shares
of Keurig, in which Coca-Cola Co has a stake, rose nearly 10 percent at
a record high of $128.82. Kraft’s shares were down 0.2 percent $57.16
in morning trading.

The Keurig brewing machine popularized the
use of pods, or small packets containing coffee, tea or hot chocolate
powder, for easy, one-cup brewing of hot drinks.

While the
financial terms were not disclosed, Keurig’s deal with Kraft is similar
to the ones it struck with Nestle SA’s U.S. division and J.M. Smucker Co
this year.

Following a planned transition period, Keurig said
it would exclusively make the Kraft-branded pods, which are expected to
be launched in fall this year.

Keurig is lining up licenses
with other coffee makers ahead of the launch of new brewing systems,
including the Keurig 2.0 and Keurig Bolt, this year.