Shares of Keurig Green Mountain exploded on Friday after traders learned of the coffee machine-maker’s partnership with Kraft Foods Group. The coffee stock shot up to a new 52-week high, trading up around 14 percent by early afternoon.
Under the multi-year licensing arrangement, Keurig will license, manufacture, and sell Kraft-branded coffee capsules, which will work with Keurig machines. The food and beverage company’s coffee brands include Maxwell House, Gevalia, Yuban, and McCafé. K-Cup versions of its selection are expected to go on sale by the fall.
Investors on StockTwits were all abuzz about the partnership, mirroring the reaction from the market where trading volume was already more than 3.5 times the daily average by 1:00 p.m. EDT.
Kraft didn’t receive the same jolt as Keurig, which padded its market cap by around $3 billion. Kraft shares were hovering right around the company’s open price and market cap of $34 billion on Friday.