NEW YORK (TheStreet) -- Keurig Green Mountain (GMCR) shares surged 13% higher to $133.01 on Friday after the K-cup provider inked a multiyear licensing deal with Kraft Foods (KRFT) to create pods for its Maxwell, Gevalia, Yuban and McDonald's (MCD) McCafe coffee brands.
The Kraft-branded portion packs -- available this fall -- will come in three options: K-Cup single cup brewers for use in the forthcoming Keurig 2.0 Brewing System; K-Carafe packs, which is optimized to brew four cups of coffee in a specially designed Keurig carafe; and the Keurig Bolt pack, which will brew a half-gallon pot of coffee from a single pack and is targeted to large office and food service locations.
Initially, both Kraft and Keurig will handle manufacturing for single-serving pods, the release said. Eventually, Keurig will become the exclusive manufacturer of Kraft-branded Keurig packs using coffee sourced, roasted, and blended by Kraft. Financial terms of the deal were not disclosed in the press release.
Read More: How DineEquity's CEO Is Transforming IHOP and Applebee's --Written by Laurie Kulikowski in New York. Follow @LKulikowski
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV