WATERBURY, Vt. (AP) – Green Mountain Coffee has bought a building in Knox County, Tenn., it plans to use as a manufacturing center supporting its single-cup coffee business, officials said.

The company, which is based in Waterbury, has purchased a 334,000-square foot facility for $10.4 million, chief operating officer Scott McCreary said in a written statement announcing the deal.

McCreary says Green Mountain Coffee has to keep pace with increasing demand and that the Tennessee location will allow it to cut distribution costs and get products out faster.