Business
KEURIG DR PEPPER AND LA COLOMBE ANNOUNCE STRATEGIC PARTNERSHIP
Equity investment by KDP paired with long-term agreements for the sales and distribution of La Colombe ready-to-drink coffee and licensing of La Colombe
About this update from Keurig Dr Pepper Inc.
[{"type":"text","content":"Equity investment by KDP paired with long-term agreements for the sales and distribution of La Colombe ready-to-drink coffee and licensing of La Colombe K-Cup® coffee pods\nBURLINGTON, Mass and FRISCO, Texas and PHILADELPHIA, July 20, 2023 /PRNewswire/ -- Keurig Dr Pepper Inc. (NASDAQ: KDP) and La Colombe today announced a strategic partnership, including a long-term sales and distribution agreement for La Colombe ready-to-drink coffee and a long-term licensing, manufacturing and distribution agreement for La Colombe branded K-Cup® coffee pods. Keurig Dr Pepper will also make an equity investment in La Colombe, enabling KDP to participate in the value creation upside expected from the partnership. \nLa Colombe is an independent, high-growth, super premium coffee company that serves consumers across multiple channels, including the retail trade, branded cafes, foodservice and direct to consumer. The brand is the only vertically integrated ready-to-drink coffee company, owning the entire coffee journey from conscious bean sourcing and premium roasting to the creation of exceptional product experiences for loyal customers.\nUnder the long-term sales and distribution agreement, KDP will sell and distribute shelf-stable La Colombe RTD coffee beverages in KDP's direct store distribution network, which is expected to drive meaningful growth in the brand's availability across these mainstream retail channels. In addition, KDP will manufacture, sell and distribute La Colombe branded K-Cup® coffee pods, under a license agreement, in the U.S. and Canada.\nKDP will make a cash investment in La Colombe of $300 million, in exchange for a 33% ownership stake in the company, making KDP the second largest investor in La Colombe behind its majority owner and Chairman, Hamdi Ulukaya. La Colombe plans to use the proceeds to accelerate growth and pay off debt. KDP's investment in La Colombe represents a multiple of approximately 3.0X estimated 2024 consolidated net sales. \n\"We are excited to partner with Hamdi and the La Colombe team to drive value for both companies,\" stated KDP Chairman and CEO Bob Gamgort. \"This partnership will enable KDP to expand its reach into high growth ready-to-drink and super premium coffee segments and will meaningfully increase La Colombe's availability to consumers.\"\n\"I'm extremely excited to join forces with Bo...