Coca Cola's Buffett-Like Green Mountain Coffee Roasters Deal?

NEW YORK (TheStreet) - "[B]lah, blah, blah, yada, yada, yada. What are we writing? None of this really matters today! What matters is that Coca-Cola took a 10% equity stake in GMCR for $1.25B and entered into a 10-year strategic partnership with GMCR to develop the Keurig Cold home beverage system with Coca Cola's global beverage brands." -- CanaccordGenuity analysts

Coca-Cola (KO) counts Warren Buffett's Berkshire Hathaway (BRK.A) as its largest shareholder. However, it's unclear if the soda giant cut a deal that is in the mold of the 'Oracle of Omaha' in partnering with Green Mountain Coffee Roasters (GMCR) in its efforts to push into the cold brewing market.

Atlanta-based Coca-Cola is gaining a 10% stake in Green Mountain Coffee Roasters at an attractive price given that it was able to acquire shares at a 50-day volume weighted average price of $74.98, well below currently trading prices. The soda giant will also have the ability to boost that stake to 16%, according to the press release announcing the deal.

What isn't explained are the economics in the partnership, which will ostensibly seek to push a new line of Keurig brewers into the cold drinks market using Coca-Cola's brands. 

In 2013, Green Mountain Coffee Roasters hinted at an effort to diversify away from its coffee and hot drinks businesses and into cold beverages. However, Wednesday's partnership is a far-quicker and more well-wrought push in that direction than most analysts had expected.

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