Coca-Cola reportedly puts plans to acquire Keurig Green Mountain on backburner, will look to bid for KGM once its stock price comes back down
April 8, 2014
(Business Monitor International)
– US-based beverage giant The Coca-Cola Company (Coke) has put its plans to acquire local coffee brand Keurig Green Mountain on the backburner, reports Business Day. In February, Coca-Cola acquired a 10% stake in Keurig as the two partners decided to work together to make a system for producing single-serve cold drinks. Keurig's shares have increased 34% since Coca-Cola took over a 10% stake in the company as short interest dropped. However, Coca-Cola will look to bid for Keurig once its stock price comes back down, according to Albert Fried & Company.
BMI View: Coke has increasingly turned to acquisitions to gain control of products that have already proven to be a hit with consumers. In 2007, the company paid more than US$4bn to acquire US-based enhanced water manufacturer Glacéau and its Vitaminwater brand. Also in 2007, the company purchased functional beverage company Fuze, which offers products containing a range of vitamins, supplements and antioxidants.