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Wednesday, January 7, 2015

Keurig, Dr Pepper Snapple sign deal for new cold-drink machine -WSJ, (NYSE: DPS), (NASDAQ: GMCR)

Keurig Green Mountain Inc, maker of the K-Cup single-serve coffee pod, signed a deal with Dr Pepper Snapple Group Inc 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. (on.wsj.com/1yzkqn4)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.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.

Dr Pepper Snapple Group, Inc. (DPS) is an integrated brand owner, manufacturer and distributor of non-alcoholic beverages in the United States, Canada and Mexico with a diverse portfolio of flavored (non-cola) carbonated soft drinks (CSDs) and non-carbonated beverages (NCBs), including ready-to-drink teas, juices, juice drinks and mixers. Shares of DPS traded higher by 0.14% or $0.1/share to $71.48. In the past year, the shares have traded as low as $46.88 and as high as $74.28. On average, 1566790 shares of DPS exchange hands on a given day and today's volume is recorded at 1556453.

Keurig Green Mountain, Inc., formerly Green Mountain Coffee Roasters, Inc. Shares of GMCR fell by 1.95% or $-2.53/share to $127.19. In the past year, the shares have traded as low as $74.44 and as high as $158.87. On average, 1737690 shares of GMCR exchange hands on a given day and today's volume is recorded at 2291137.



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