Two giants converge as Keurig Green Mountain signs deal with Kraft

Stocks of both Keurig Green Mountain and Kraft surged on the news that the two have signed a deal to make Kraft's brands of coffees available on the Keurig system.  The companies announced on 22 August a multi-year licensing, manufacturing and distribution agreement for Kraft's branded coffees. Financial terms of the agreement were not disclosed.  Kraft is one of North America's largest consumer packaged food and beverage companies, reporting US$18.2 billion in revenue for 2013. Its Maxwell House coffee is a top selling item on retail shelves. The deail will also see Gevalia, Yuban and McCafe coffees, all brands owned by Kraft, available in KCup format.  “This agreement offers the opportunity for expanded distribution across multiple channels, and is another example of our focus on long-term growth in action,” said Dino Bianco, Kraft’s Executive Vice President and President, Beverages in a statement.  Kraft-branded portion packs should be available in North America's Fall 2014. 

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