As part of a $300 million investment, Keurig Dr Pepper will sell and distribute La Colombe ready-to-drink coffee beverages in KDP’s direct store distribution network.
La Colombe is a Philadelphia-based premium coffee company.
The deal also involves KDP licensing, making and distributing La Colombe branded K-Cup coffee pods in the United States and Canada.
KDP also will make an equity investment in La Colombe, KDP said. The $300 million cash investment is 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, the release said. La Colombe plans to use the proceeds to accelerate growth and pay off debt.
“We are excited to partner with Hamdi and the La Colombe team to drive value for both companies,” said 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.”
Ulukaya said, “I joined the La Colombe journey eight years ago because I believe in its mission, quality, craftsmanship and social impact, and that everyone deserves quality, crafted, natural coffee. With this partnership we’ll be closer to fulfilling the mission of providing exceptional coffee to all.”
The transition of La Colombe ready-to-drink coffee distribution to KDP will begin in late 2023, while the launch of La Colombe-branded K-Cup pods will occur during 2024, the companies said. They expect the equity investment, subject to regulatory approval, to close by the end of the third quarter.
La Colombe is an independent, high-growth, 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.
KDP, which is based in Burlington, Massachusetts, and Frisco, Texas, did not respond to a CSP request for additional comment regarding plans in the convenience-store channel.
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