Keurig cold drink machine to offer Dr Pepper Snapple sodas

By Reuters

Jan 08, 2015 01:19 AM EST

Keurig Green Mountain Inc will sell Dr Pepper Snapple Group Inc's soda pods for its at-home cold beverage system, Keurig Cold, expected to be launched this year.

Shares of Keurig, which did not disclose the financial terms of the deal, rose about 3 percent to $131.22 in premarket trading.

Dr Pepper's beverage brands include Snapple, 7-Up and Schweppes.

Keurig is betting on a niche market for home-made cold beverages that it says could become bigger than the single-serve hot beverage market. Cold beverage systems allow consumers to make carbonated and non-carbonated beverages at home.

The Wall Street Journal reported earlier on Wednesday that the two companies had signed a deal.

The multi-year deal prevents Dr Pepper from offering its carbonated drink brands through countertop beverage machines made by SodaStream International Ltd and others, the Journal said.

Keurig has been signing deals with companies such as Kraft Foods Group Inc to expand beyond its core K-cup coffee packet business.

Keurig signed a deal with Coca-Cola Co in September to sell the carbonated drink maker's Honest Tea pods in its hot brewing machines in North America.

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