Keurig Dr Pepper announces acquisition of Kalil Bottling Co. assets

Keurig Dr Pepper (KDP), a renowned player in the beverage industry, revealed a significant expansion of its operational footprint with the acquisition of all production, sales, and distribution assets of Kalil Bottling Co. (Kalil), an independent bottler. The agreement grants KDP new bottling and distribution rights in Arizona for its prominent brands including Canada Dry, 7UP, A&W, Snapple, and Core Hydration. This move is set to enhance KDP’s direct-store-delivery (DSD) capabilities across approximately 4,500 retail outlets, catering to 7.4 million consumers in the region.

Enhancing Operations and Workforce

Post-acquisition, KDP will take over a production facility in Tucson along with sales and distribution centers in Tucson and Tempe. This expansion is not only a boost to KDP’s infrastructure but also a significant opportunity for local employment. Approximately 425 new employees are expected to be integrated into KDP’s operations, with efforts to recruit actively from Kalil’s existing talent pool.

Strategic Growth and Local Impact

Tim Cofer, Chief Executive Officer at Keurig Dr Pepper, emphasized the strategic nature of this acquisition, stating, “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.” Cofer highlighted that amplifying KDP’s route to market is a priority investment that will extend the system’s reach while offering more direct insights into the local consumer base and fostering stronger retail collaborations.

Legacy and Future Vision

John Kalil, President of Kalil Bottling Co., reflected on the historical significance of the deal, “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.”

Continued Partnership and Optimized Distribution

Andrew Archambault, President of U.S. Refreshment Beverages at KDP, also commented on the long-standing relationship between the two companies, noting, “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.” He expressed enthusiasm about establishing KDP’s first owned manufacturing, sales, and distribution operation in Arizona as part of their strategy to optimize the route to market across the U.S.

The acquisition is slated for completion in the third quarter of 2024, though the financial terms of the deal have not been disclosed. This strategic expansion by KDP is poised to significantly impact its distribution efficiency and market presence in Arizona, reinforcing its position as a leader in the beverage industry.