Skip to main content
The Globe and Mail
Get full access to globeandmail.com
Support quality journalism
Just $1.99 per week for the first 24weeks
Just $1.99 per week for the first 24weeks
The Globe and Mail
Support quality journalism
Get full access to globeandmail.com
Globe and Mail website displayed on various devices
Just$1.99
per week
for the first 24weeks

var select={root:".js-sub-pencil",control:".js-sub-pencil-control",open:"o-sub-pencil--open",closed:"o-sub-pencil--closed"},dom={},allowExpand=!0;function pencilInit(o){var e=arguments.length>1&&void 0!==arguments[1]&&arguments[1];select.root=o,dom.root=document.querySelector(select.root),dom.root&&(dom.control=document.querySelector(select.control),dom.control.addEventListener("click",onToggleClicked),setPanelState(e),window.addEventListener("scroll",onWindowScroll),dom.root.removeAttribute("hidden"))}function isPanelOpen(){return dom.root.classList.contains(select.open)}function setPanelState(o){dom.root.classList[o?"add":"remove"](select.open),dom.root.classList[o?"remove":"add"](select.closed),dom.control.setAttribute("aria-expanded",o)}function onToggleClicked(){var l=!isPanelOpen();setPanelState(l)}function onWindowScroll(){console.log("scroll");var l=isPanelOpen(),n=0===(document.body.scrollTop||document.documentElement.scrollTop);n||l||!allowExpand?n&&l&&(allowExpand=!0,setPanelState(!1)):(allowExpand=!1,setPanelState(!0))}pencilInit(".js-sub-pencil",!1);

A Keurig coffee machine is seen in this file photo.

Keurig Green Mountain Inc. shares surged to a record high after announcing a deal to bring Kraft Foods Group Inc. coffee brands such as Maxwell House, Yuban and McCafe to its home brewing system.

Kraft will offer its coffees in portion packs for Keurig machines as part of a multi-year licensing, manufacturing and distribution pact, according to a statement today. That includes K-Cup packs, which make single cups of coffee, as well as the K-Carafes and Bolt packs for larger portions.

The move brings another high-profile partner to Keurig, which also is working with Coca-Cola Co. on a system for producing cold beverages. In February, Coca-Cola bought 16.7 million newly issued shares in Keurig for about $1.25-billion (U.S.). The beverage giant announced that it was increasing its stake to 16 per cent in May, making it Keurig's largest shareholder.

Story continues below advertisement

The Kraft agreement helps Keurig by giving it the biggest family of coffee brands that isn't already on its system, Mark Astrachan, an analyst at Stifel Financial Corp. in New York, said in a research note.

Keurig jumped 13 per cent to $133.36 in New York, marking the biggest intraday gain since May. Shares of the Waterbury, Vermont-based company climbed 77 per cent this year, while the Standard & Poor's 500 Index has advanced 7.6 per cent.

"Adding Kraft's celebrated brands to the licensed Keurig family means Keurig consumers will be able to enjoy even more beverages they know and love with the quality and consistency they expect from their Keurig brewer," Keurig Chief Executive Officer Brian Kelley said in today's statement.

Manufacturing agreement

The Kraft-branded Keurig packs will begin appearing in the fall, with both companies initially making them. Eventually, Keurig plans to take over manufacturing of the packs, with Kraft supplying and roasting the coffee.

The agreement also covers Kraft's Swedish-inspired Gevalia coffee. Its McCafe product is part of a collaboration with McDonald's Corp., with the two companies jointly marketing the brand and selling it at grocery stores nationwide.

Kraft Foods, based in Northfield, Ill., broke off from Mondelez International Inc. in 2012, taking the North American grocery business and brands such as Kool-Aid and Velveeta. Mondelez is focused on snacks, including Oreo and Wheat Thins, which it sells globally.

Story continues below advertisement

Keurig, which changed its name from Green Mountain Coffee Roasters Inc. in March, has been seen as a takeover candidate for at least three years, in part because of its rapid growth. The Coca-Cola investment could be a precursor to an eventual acquisition of Keurig, Ali Dibadj, a New York-based analyst at Sanford C. Bernstein & Co., said earlier this year.

Report an error
Tickers mentioned in this story
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies