Shares of Keurig Green Mountain (GMCR) cruised 3% higher Monday morning as Wall Street cheers the company’s invitation to join the S&P 500.
The move will take effect after the close of trading on March 21 and will likely force portfolio managers who track the S&P 500 to buy shares of Waterbury, Vt.-based Keurig Green Mountain.
Last week,Keurig Green Mountain announced plans to expand its lineup of Starbucks (SBUX) single-serve products in return for ending the coffeehouse chain’s exclusivity deal.
The changes come after Coca-Cola (KO) acquired a 10% stake in Green Mountain for $1.25 billion in February and announced plans to market a new at-home beverage system created by the coffee roaster.
Keurig Green Mountain shares rallied 3.31% to $117.00 in premarket trading Monday morning, putting them on track to extend their 2014 surge of 50%.