Acquisition creates first Company-owned
manufacturing, sales and distribution operations in Arizona
BURLINGTON, Mass. and FRISCO, Texas, May 31, 2024
/PRNewswire/ -- Keurig Dr Pepper (NASDAQ: KDP) today announced an
agreement to acquire all production, sales and distribution assets
of independent bottler Kalil Bottling Co. (Kalil). With the
agreement, KDP's Company-owned direct-store-delivery (DSD)
operations will gain new bottling and distribution rights in
Arizona to key KDP brands
including Canada Dry, 7UP, A&W, Snapple and Core Hydration,
servicing 7.4 million consumers and approximately 4,500 retail
outlets.
After the close of the transaction, KDP will operate a
production facility in Tucson and
sales and distribution centers in Tucson and Tempe. KDP expects to add approximately 425
employees in support of these new state-wide operations and will be
working with Kalil to actively recruit from its existing talent
base.
"This exciting acquisition strengthens our unique national DSD
capabilities and creates opportunities for enhanced scale and brand
building in a fast-growing region for beverages," said Tim Cofer, Chief Executive Officer at KDP.
"Amplifying our route to market advantage is a key investment
priority for KDP, and this strategic move will extend our
system's reach while providing us more direct insight into the
local consumer base and stronger retail collaboration."
Commenting on the announcement, John
Kalil, President, Kalil Bottling Co. stated: "The Kalil
family has been in Arizona since
before statehood, and Kalil Bottling Co. has been around for
seventy-six of those years. We thank Arizona for allowing us to serve you. We are
transferring Kalil Bottling Co.'s business to Keurig Dr
Pepper. When you pair the Kalil's Family legacy with KDP's
national footprint, the future looks bright."
"Kalil has been an amazing independent bottling partner to KDP
for decades, and we look forward to continuing Kalil's commitment
to service excellence for our Arizona customers and consumers," said
Andrew Archambault, President, U.S.
Refreshment Beverages at KDP. "As we continue to optimize the best
possible route to market throughout the U.S. for our portfolio
of leading brands, we are thrilled about adding the first KDP-owned
manufacturing, sales and distribution operation in the
state."
The acquisition is expected to close in the third quarter of
2024. Terms of the agreement have not been disclosed.
About Keurig Dr Pepper
Keurig Dr Pepper (Nasdaq: KDP)
is a leading beverage company in North
America, with a portfolio of more than 125 owned, licensed
and partner brands and powerful distribution capabilities to
provide a beverage for every need, anytime, anywhere. With annual
revenue of approximately $15 billion,
we hold leadership positions in beverage categories including soft
drinks, coffee, tea, water, juice and mixers, and have the #1
single serve coffee brewing system in the U.S. and Canada. Our innovative partnership model
builds emerging growth platforms in categories such as premium
coffee, energy, sports hydration and ready-to-drink coffee. Our
brands include Keurig®, Dr Pepper®, Canada Dry®, Mott's®, A&W®,
Snapple®, Peñafiel®, 7UP®, Green Mountain Coffee Roasters®,
Clamato®, Core Hydration® and The Original Donut Shop®. Driven by a
purpose to Drink Well. Do Good., our 28,000 employees aim to
enhance the experience of every beverage occasion and to make a
positive impact for people, communities and the planet. For more
information, visit www.keurigdrpepper.com and follow us on
LinkedIn.
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.
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
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SOURCE Keurig Dr Pepper