Keurig Dr Pepper Further Strengthens its Direct-Store-Delivery Network with Two Territory Acquisitions

Rhea-AI Summary

Keurig Dr Pepper (NASDAQ: KDP) has announced agreements to acquire manufacturing, sales, and distribution rights for key brands, including Canada Dry and A&W, in 37 counties across east Texas and northern Louisiana, effective February 2021. This move integrates these brands into KDP's direct-store-delivery (DSD) network, allowing access to 1.5 million consumers. KDP aims to ensure competitive route-to-market and excellent service for its retail customers. The company generated over $11 billion in annual revenue through a diverse portfolio of more than 125 brands.

Positive

• Acquisition expands KDP's direct-store-delivery network into 37 new counties.
• Access to 1.5 million additional consumers enhances market reach.
• Integration of iconic brands like Canada Dry and Snapple could boost sales.

Negative

• None.

BURLINGTON, Mass. and PLANO, Texas, Nov. 24, 2020 /PRNewswire/ -- Keurig Dr Pepper (NASDAQ: KDP) announced today that it had reached agreements with The Red River Beverage Group and The Made-Rite Company to acquire the manufacturing, sales and distribution rights to key KDP owned and licensed brands in 37 counties in east Texas and northern Louisiana, reaching 1.5 million consumers. The transaction moves iconic brands such as Canada Dry, A&W, 7UP, Sunkist, Snapple, CORE, and Bai into KDP's company- owned direct-store-delivery (DSD) operations, beginning February 2021. In seven of these counties, the Dr Pepper brand will also move into the KDP DSD network.

Derek Hopkins, President Cold Beverages, for Keurig Dr Pepper stated, "KDP is focused on ensuring that each area in which we sell our brands has a competitive route-to-market. Our teams are well prepared to deliver excellent service to our retail customers and ensure the availability of these great brands wherever consumers shop. We are thankful to The Red River Beverage Group and The Made-Rite Company for their dedication to growing these brands, and we wish them continued success as their business models evolve."

KDP currently has DSD operations in adjacent counties and will expand service into the acquired territory, with open positions and job requirements being discussed with interested employees at Red River Beverage Group and Made-Rite. KDP is driving strong performance across its total portfolio and has gained share in the vast majority of its category segments, including carbonated soft drinks, during the past year.

Terms of the agreements were not disclosed.

ABOUT KEURIG DR PEPPER
Keurig Dr Pepper (KDP) is a leading beverage company in North America, with annual revenue in excess of $11 billion and nearly 26,000 employees. KDP holds leadership positions in 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®, Green Mountain Coffee Roasters®, Canada Dry®, Snapple®, Bai®, Mott's®, CORE® 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 is committed to sourcing, producing and distributing its beverages responsibly through its Drink Well. Do Good. corporate responsibility platform, including efforts around circular packaging, efficient natural resource use and supply chain sustainability. For more information, visit,  www.keurigdrpepper.com.

Media Contact

Keurig Dr Pepper
Katie Gilroy
T: 781-418-3345
Katie.gilroy@kdrp.com

Investor Contact:

Keurig Dr Pepper
Tyson Seely
T: 781-418-3352
tyson.seely@kdrp.com

 

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SOURCE Keurig Dr Pepper

FAQ

What brands did KDP acquire the rights to in Texas and Louisiana?

KDP acquired rights to brands including Canada Dry, A&W, 7UP, Sunkist, Snapple, CORE, and Bai.

When will the acquisition of distribution rights by KDP take effect?

The acquisition will take effect in February 2021.

How many consumers will KDP reach with this acquisition?

The acquisition will enable KDP to reach 1.5 million consumers.

What are the strategic benefits of KDP's acquisition?

The acquisition enhances KDP's competitive route-to-market and expands its direct-store-delivery network.

What is KDP's annual revenue?

KDP generates over $11 billion in annual revenue.