Keurig Cold-Drink Machine Expected This Year

WATERBURY, Vt. — Keurig Green Mountain Inc. signed a deal with Dr Pepper Snapple Group Inc. Wednesday to sell individual capsules that will make the latter's sodas in a planned Keurig cold-drink machine. Terms of the multiyear deal were not disclosed.

According to the Wall Street Journal, the partnership prohibits Dr Pepper from sharing its carbonated drink brands with Keurig competitor SodaStream International Ltd. or any other countertop drink machines.

Keurig is known for hot beverages, primarily via its K-Cup single-serve coffee pods. However, the Waterbury-based company expects to debut a cold brewing system this year. Once introduced, the cold beverage machine is expected to allow consumers to make both carbonated and non-carbonated beverages at home.

Keurig is also expected to team up with other beverage companies for its new product, as well as introduce its own cold-drink pods, the newspaper reported.

Last year, Keurig began selling Dr Pepper competitor Coca-Cola Co.'s Honest Tea pods for its hot beverage system. The Coca-Cola Co. also purchased a 10-percent stake in Keurig, which it is expected to raise to a 16-percent stake in the future.