Don't worry coffee drinkers. Your daily K-Cup habit shouldn't get more expensive as coffee commodity prices skyrocket, Green Mountain Coffee Roasters' chief executive officer told CNBC on Wednesday.
That's because the company's trademark coffee pods have a price premium built in that should protect them from swings in coffee futures, Brian Kelley said in his first interview since announcing a huge deal with Coca-Cola two weeks ago.
Arabica coffee prices surged to 16-month highs Wednesday off concerns about crop damage caused by a severe, weeks long drought in Brazil. Prices of arabica coffee beans have seen a 40 percent increase during the past year.
(Read more: Arabica coffee soars to 16-month high on Brazil crop worry, charts)
"There's no question the market has come up and may continue to come up," Kelley said on "Squawk on the Street." "We're well-protected. ... The most important thing about coffee pricing is that single-cup pricing has continued to premiumize the category regardless of what the commodity prices of coffee have done. We see that continuing."