Keurig Dr Pepper and Grupo PiSA Announce Long-Term Partnership for Electrolit

Rhea-AI Summary

Keurig Dr Pepper (KDP) and Grupo PiSA have announced a long-term partnership for the distribution of Electrolit, a premium hydration beverage, in the United States. This partnership allows KDP to enter the sports hydration category and expand Electrolit's distribution in the US. Electrolit has experienced strong growth in the US, generating over $400 million in retail sales and increasing more than ten-fold in the past five years.

Positive

• KDP will sell, distribute, and merchandise Electrolit in the US, expanding the brand's distribution and growth potential. Electrolit is a top 5 trademark in the sports hydration category and has grown at a strong double-digit rate in the US, with over $400 million in retail sales.

Negative

• No negative takes found.

BURLINGTON, Mass. and FRISCO, Texas and GUADALAJARA, Mexico, Oct. 26, 2023 /PRNewswire/ -- Keurig Dr Pepper Inc. (NASDAQ: KDP) and Grupo PiSA announced today that KDP will sell, distribute and merchandise Electrolit®, a premium hydration beverage, across the United States as part of a long-term sales and distribution agreement. The partnership extends KDP's portfolio into sports hydration, a key white space category for the Company, and is designed to significantly expand Electrolit's distribution and continue the brand's accelerated growth.

Leveraging its more than 70-year history and leading market position in Mexico, Electrolit entered the U.S. market in 2014. Since then, it has grown to become a top 5 trademark in the sports hydration category, which, at approximately $11 billion in U.S. retail sales per IRI, represents a large and growing segment within liquid refreshment beverages.  With its great taste, premium ingredients and scientific formula, Electrolit is growing at a strong double-digit rate in the U.S., where it already generates more than $400 million in retail sales and has increased more than ten-fold over the past five years.

Under the partnership, KDP will sell and distribute Electrolit in the vast majority of KDP's company-owned direct store distribution territories and across all channels of trade. Building on its Hispanic heritage and regional strengths, Electrolit has a long runway for growth among a broad multi-cultural consumer base as KDP enhances its distribution nationwide.  

Commenting on the announcement, Andrew Archambault, President – Commercial & Beverage Concentrates, stated, "We are thrilled to enter the sports hydration category with Electrolit, broadening our portfolio to address this important beverage occasion for our consumers. Electrolit is a differentiated brand with tremendous consumer appeal, and KDP's proven sales and distribution capabilities are poised to unlock its significant growth potential."

Caridad Ochoa, President and Chief Executive Officer of Electrolit USA, added, "We look forward to a highly successful alliance and partnership between our companies. KDP is the right strategic partner to further expand Electrolit's footprint in the U.S. KDP's scale, capabilities and insights, coupled with Electrolit's rich heritage and loyal following, will drive the next stage of our determined growth initiatives."

The transition of Electrolit distribution to KDP will occur in early 2024. Other terms of the agreement are not being disclosed.

Investor Contacts:

Jane Gelfand
T: 888-340-5287 / jane.gelfand@kdrp.com

Chethan Mallela
T: 888-340-5287 / chethan.mallela@kdrp.com 

Media Contact:

Katie Gilroy
T: 781-418-3345 / katie.gilroy@kdrp.com 

ABOUT KEURIG DR PEPPER

Keurig Dr Pepper (KDP) is a leading beverage company in North America, with annual revenue of more than $14 billion and approximately 28,000 employees. KDP holds leadership positions in liquid refreshment beverages, including soft drinks, specialty coffee and tea, water, juice and juice drinks and mixers, and markets the #1 single serve coffee brewing system in the U.S. and Canada. The Company's portfolio of more than 125 owned, licensed and partner brands is designed to satisfy virtually any consumer need, any time, and includes Keurig®, Dr Pepper®, Canada Dry®, Clamato®, CORE®, Green Mountain Coffee Roasters®, Mott's®, Snapple®, and The Original Donut Shop®. Through its powerful sales and distribution network, KDP can deliver its portfolio of hot and cold beverages to nearly every point of purchase for consumers. The Company's Drink Well. Do Good. corporate responsibility platform is focused on the greatest opportunities for impact in the environment, its supply chain, the health and well-being of consumers and with its people and communities. For more information, visit www.keurigdrpepper.com. 

ABOUT ELECTROLIT

Electrolit manufactures a scientifically formulated premium hydration beverage that replenishes the body after physical activity, intense heat, or a night of partying. Founded in Mexico in 1950, since, Electrolit has become revered by athletes & partygoers alike as a recovery drink. Formulated with magnesium, potassium, calcium, sodium glucose, and sodium lactate plus six ions for electrolyte absorption, Electrolit aids in the recovery of the hydro electrolytic imbalance, fulfilling metabolic and hydration needs. Available in 15 delicious flavors, Electrolit is currently offered in national, grocery, convenience, and online channels across the nation, including Walmart, Kroger, Jewel-Osco, 7-11 and more. Electrolit is manufactured and owned by Pisa Pharmaceuticals, the largest pharmaceutical company in Mexico and Latin America.

FORWARD LOOKING STATEMENTS

Certain statements contained herein are "forward-looking statements" within the meaning of applicable securities laws and regulations. These forward-looking statements can generally be identified by the use of words such as "outlook," "guidance," "anticipate," "expect," "believe," "could," "estimate," "feel," "forecast," "intend," "may," "plan," "potential," "project," "should," "target," "will," "would," and similar words. Forward-looking statements by their nature address matters that are, to different degrees, uncertain. These statements are based on the current expectations of our management, are not predictions of actual performance, and actual results may differ materially.

Forward-looking statements are subject to a number of risks and uncertainties, including the factors disclosed in our Annual Report on Form 10-K and subsequent filings with the SEC. We are under no obligation to update, modify or withdraw any forward-looking statements, except as required by applicable law.

 

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SOURCE Keurig Dr Pepper Inc.

FAQ

What is the partnership between KDP and Grupo PiSA about?

The partnership is for the distribution of Electrolit, a premium hydration beverage, in the United States.

What category does Electrolit belong to?

Electrolit belongs to the sports hydration category.

How has Electrolit performed in the US market?

Electrolit has experienced strong growth in the US, generating over $400 million in retail sales and increasing more than ten-fold in the past five years.

What is KDP's role in the partnership?

KDP will sell, distribute, and merchandise Electrolit in the vast majority of its company-owned direct store distribution territories and across all channels of trade in the US.