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Coca-Cola makes a new deal that will put soda machines in homes

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Yahoo Finance Breakout reported on Feb. 6, 2014 that Coca-Cola (KO) has joined forces with Green Mountain Coffee Roaster (GMCR) to bring their version of a soda machine for home use.

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The 120 year old carbonated beverage company, wants to go beyond the vendor machines, bottle purchases and fountain drinks to make their soda machine at your disposal in your home for anytime consumption.

Green Mountain is the created of the Keurig single serve coffee machine. Coca-Cola has signed a 10 year partnership agreement with Green Mountain Coffee Roaster for over 1.2 billion dollars, to make a home base soda system for its customers.

Coca-Cola wants to take the competition Soda Stream International (SODA) head on with their version of an in home soda system.

The two companies are working on the conceptualization of this machine for release later this year.

Although Coca-Cola is a bigger entity than Soda Stream, they are evaluating how this smaller company doubled their revenue since its inception in 2011.

Coca-Cola has been able to stay on top over their competitors despite the decline of carbonated drinks over the last couple of years.

Coca-Cola has purchased well known beverages such as Sprite, Minute Maid, Powerade and Vitaminwater in the past which helped their income stream. Coke purchase Glaceau which the parent company of Vitaminwater in 2007 for 4.1 billion dollars.

The purchases of these beverage companies have allowed Coke to remain successful in a trying economic time for most companies.

Coca-Cola has remained the number one beverage company in the U.S. because they always look for ways to market and create new products, and enhance and redesign their original products.

Coke looks closely at what the competitor does, and seizes the opportunity to get a piece of the income.



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