Food & Beverage

Keurig, Dr Pepper Snapple sign deal for new cold-drink machine: WSJ

Keurig Green Mountain, maker of the K-Cup single-serve coffee pod, signed a deal with Dr Pepper Snapple to sell capsules that make its sodas in Keurig's planned cold-drink machine, the Wall Street Journal reported.

Keurig and Dr Pepper didn't disclose the financial terms for their multiyear deal, which Dr Pepper said prevents it from sharing its carbonated drink brands with SodaStream or other countertop drink machines, the newspaper reported.

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Keurig said the deal, expected to be announced on Wednesday, will give it at least 30 beverage varieties—including multiple brands from the two soda partners—for the new machine, the Journal reported.

Source: Dr. Pepper | Facebook

Keurig is expected to introduce its new cold brewing system in 2015, betting on a niche market that it says could become bigger than the single-serve hot beverage market. Cold brewing systems enable consumers to make carbonated and non-carbonated beverages at home and use little fridge space.

Keurig is also joining with other beverage companies for its machine and will come out with some of its own drink pods, the Journal said.

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Representatives at Keurig and Dr Pepper were not immediately available for comment outside regular U.S. business hours.

In September, Keurig expanded its deal with Coca-Cola to sell the beverage company's Honest Tea pods in its Keurig hot brewing machines in North America, making it the first Coca-Cola product to be made available in Keurig's hot brewing system.

Coca-Cola took a 10 percent stake in the company, which it said in May it would raise to 16 percent.