Keurig Dr Pepper strengthens its domestic direct store delivery operations with the acquisition of strategic assets from Kalil Bottling Company

The acquisition creates the first company-owned manufacturing, sales and distribution operations in Arizona

BURLINGTON, Holy Mass AND FRISCO, Texas, May 31, 2024 /PRNewswire/ — Keurig Dr Pepper (NASDAQ: KDP) announced today that it has entered into an agreement to acquire all of the manufacturing, sales and distribution assets of independent bottling company Kalil Bottling Co. (Kalil). Through this agreement, the Company’s direct-to-store delivery (DSD) business KDP will gain new bottling and distribution rights in Arizona to key KDP brands including Canada Dry, 7UP, A&W, Snapple and Core Hydration, serving 7.4 million consumers and approximately 4,500 retail locations.

After closing the transaction, KDP will operate the production plant in Tucson and sales and distribution centers in Tucson AND Tempe. KDP expects to hire approximately 425 employees to support these new operations across the state and will work with Kalil to actively recruit from its existing talent base.

“This exciting acquisition strengthens our unique domestic DSD capabilities and creates opportunities to scale and build our brand in the rapidly growing beverage region,” he said Tim Cofer, general director of KDP. “Strengthening our path to market advantage is a key investment priority for KDP, and this strategic move will expand the reach of our system while providing more direct insight into the local consumer base and stronger retail partnerships.”

When commenting on the ad, Jan Kalilpresident of Kalil Bottling Co. he declared, “The Kalil family is present Arizona even before obtaining statehood, and the Kalil Bottling Co. has been on the market for seventy-six years. Thank you Arizona for being able to serve you. We are relocating the Kalil Bottling Co. business. for Keurig Dr Pepper. When you combine the legacy of the Kalila Family with the nationwide reach of KDP, the future is bright.”

“Kalil has been an incredible independent bottling partner for KDP for decades, and we look forward to Kalil’s continued commitment to providing excellent service to our customers Arizona customers and consumers,” he said Andrew Archambault, president of the American refreshment division at KDP. “As we continue to optimize the best possible route to market across the United States for our portfolio of leading brands, we are excited to add the first KDP-owned manufacturing, sales and distribution facility in the state.”

The acquisition is scheduled to close in the third quarter of 2024. Terms of the deal were not disclosed.

About Keurig Dr. Pepper
Keurig Dr Pepper (Nasdaq: KDP) is a leading beverage company in North America, with a portfolio of over 125 owned, licensed and partner brands and powerful distribution capabilities to provide a beverage for every need, anytime, anywhere. With annual revenues of approx $15 billionwe are a leader in beverage categories including soft drinks, coffee, tea, water, juice and mixers, and have the #1 single-serve coffee 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 the goal of drinking well. Do good., our 28,000 employees strive to improve the experience at every beverage occasion and make a positive impact on people, communities and the planet. For more information, visit www.keurigdrpepper.com and follow us on LinkedIn.

Forward-looking statements
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Contacts for investors:
Jane Gelfand
T: 888-340-5287 / (email protected)

Chethan Mallela
T: 888-340-5287 / (email protected)

Contact with the media:
Katie Gilroy
T: 781-418-3345 / (email protected)

SOURCE Keurig Dr Pepper