The Coca-Cola Company (CCC) has signed a deal to purchase 10% minority stake in Green Mountain Coffee Roasters (GMCR) for around $1.25bn.

The companies have also entered into a 10yr agreement to develop and introduce Coca-Cola’s brand portfolio in GMCR’s upcoming Keurig Cold at-home beverage system.

The agreement requires both the companies to bring the Keurig Cold beverage system to consumers across the world.

Similar to its Keurig hot system, the Keurig Cold single-serve beverage system will be an open-architecture platform and will use formulated pods to dispense cold beverages such as carbonated drinks, juice drinks, sports drinks and teas.

Following the collaboration of both businesses, GMCR will involve in the production and sale of CCC’s branded single serve, pod-based cold beverages.

Both the companies further plan to collaborate on the Keurig platform.

GMCE CEO and president Brian Kelley said with CCC as a global strategic partner in their multi-brand at-home Keurig Cold beverage system, they believe there is significant opportunity to premiumise and accelerate growth in the cold beverage category by empowering consumers with an innovative, convenient way to freshly prepare their favourite cold beverages at the push of a button.

"This global relationship combines The Coca-Cola Company’s unparalleled brand, distribution and marketing strengths with GMCR’s innovative technology and beverage system expertise," Kelley added.

CCC CEO and chairman Muhtar Kent said this agreement demonstrates their creative approach to partnerships and ability to identify and stay at the forefront of consumer trends driving the industry.

"By pairing The Coca-Cola Company’s brand leadership and global footprint with GMCR’s innovative technology, together we will be able to capitalize on the many exciting growth opportunities in the single-serve, pod-based segment of the cold beverage industry," Kent added.

"Importantly, this partnership provides our consumers with a convenient way to enjoy the brands they love through in-home preparation."

The purchase transaction, which is subject to customary closing conditions and regulatory approvals, is expected to close in March 2014.