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
BURLINGTON, 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.
La 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.
Under 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.
KDP 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.
"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."
"I'm extremely excited to join forces with Bob and his team at
KDP to bring La Colombe to every corner of this amazing country,"
said Ulukaya. "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 equity investment,
which is subject to regulatory approval, is expected to close by
the end of the third quarter. KDP expects the strategic partnership
to be modestly accretive on a full-year basis, beginning in the
back half of 2024.
Advisors on the deal for KDP included Guggenheim Securities LLC
and Skadden, Arps, Slate, Meagher & Flom LLP. La Colombe's
advisors included Blank Rome LLP.
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
About Keurig Dr Pepper
Keurig Dr Pepper (KDP) is a leading beverage company in
North America, with annual revenue
of more than $14 billion and
approximately 28,000 employees. KDP holds leadership positions in
liquid refreshment beverages, including 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®, Canada Dry®, Clamato®, CORE®, Green Mountain
Coffee Roasters®, Mott's®, Snapple®, 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's Drink Well. Do Good.
corporate responsibility platform is focused on the greatest
opportunities for impact in the environment, its supply chain, the
health and well-being of consumers and with its people and
communities. For more information, visit
www.keurigdrpepper.com.
About La Colombe
La Colombe is a leading, independent coffee roaster in pursuit
of excellent coffee for all since its inception in 1994.
Through ethical trade with growers, advocating for equity, and
empowering their communities, La Colombe continues to be a
pioneer and raises the standards for outstanding quality
coffee. The company is known for providing beloved signature
blends, exceptional single-origin coffees, and the
world's first-ever textured canned cold latte. La Colombe owns
and operates 32 cafés across Philadelphia, New York, Chicago, Boston, Los Angeles, Austin, and
Washington, D.C.. La Colombe's
celebrated coffees are also available in cafés, hotels,
restaurants and retailers worldwide. For more information on
La Colombe, visit www.lacolombe.com.
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, such as statements regarding
the expected future results of KDP's strategic partnership with La
Colombe, the ability to complete and integrate the partnership and
other statements that are not historical fact. 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.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/keurig-dr-pepper-and-la-colombe-announce-strategic-partnership-301882078.html
SOURCE Keurig Dr Pepper Inc.