By early afternoon, shares had climbed 7.9% to $114.53.
The company, which recently changed its name from Green Mountain Coffee Roasters, said it had entered into a manufacturing and distribution agreement for Peet's-branded packs made for Keurig's home-brewing system. The selection is planned for release by the end of the summer.
Financial terms of the agreement were not disclosed.
"We're thrilled to bring Keurig consumers and Peet's lovers the choice of Peet's premium specialty coffees and teas as part of the continually growing Keurig family of brands," said Keurig CEO Brian Kelley in a statement.
Separately, Keurig said it has revised the terms of its five-year agreement with Starbucks. The companies have eliminated the terms of exclusivity related to the super-premium coffee K-Cups, while Starbucks will receive improved business terms including an expanded Starbucks K-Cup range.
"This advancement advances Starbucks' commitment to strengthening its global leadership position in the nearly $8 billion premium single-cup coffee category," said Starbucks group president of channel development and emerging brands John Culver in a statement.
"This amended agreement creates more favorable business terms for both companies and allows us to build upon our strong relationship," added Mark Wood, Keurig SVP of global hot systems.
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