NEW YORK (CNNMoney) -- Starbucks said Thursday it has signed a deal for the sale of single-cup versions of its coffee and tea products to be sold for Green Mountain Coffee Roasters' K-Cup system.
Shares for Vermont-based Green Mountain (GMCR) surged 27% on news of the deal. The stock for Seattle-based Starbucks (SBUX, Fortune 500) rose 8%.
Green Mountain produces the Keurig, or K-Cup, single-cup brewing system that typically uses its own branded products. But this new deal would allow Green Mountain to also produce K-Cup versions of Starbucks coffees and Tazo teas.
The companies said Keurig-system coffeemakers were the top five sellers in the United States during last year's holiday shopping season.
"This relationship is yet another example of GMCR's strategy of aligning with the strongest coffee brands to support a range of consumer choice and taste profiles in our innovative Keurig Single-Cup Brewing system," said Green Mountain Chief Executive Lawrence J. Blanford. 
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