KO Coca Cola Company

Coca-Cola Co. said Tuesday it will increase its stake in Keurig Green Mountain Inc. to 16% from 10% as the world's largest beverage company deepens its exposure to coffee and countertop carbonation.

The move comes after it signed an agreement in February to sell its cold drinks through an at-home beverage system being developed by the fast-growing maker of the Keurig single-serve coffee maker.

Under February's partnership, Coke also acquired a 10% stake in Keurig for $1.25 billion and the option to increase its stake up to 16% through open market purchases of Keurig's common stock within 36 months.

In a statement Tuesday, Coke said it has entered an accelerated purchase agreement with Credit Suisse to acquire shares to reach that level.

Write to Mike Esterl at mike.esterl@wsj.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires