Keurig Dr Pepper pays $300M for 33% stake in La Colombe, strikes licensing deal
Keurig Dr. Pepper, well-known for its eponymous beverages, has been actively expanding its presence in rapidly growing consumer categories. Last year, the company engaged in various initiatives to strengthen its position in these categories.
Among its notable moves, Keurig Dr. Pepper participated in a funding round for the energy drink A Shoc and acquired a minority stake in Athletic Brewing, expanding its footprint in the non-alcoholic beer market. The company also invested $863 million to acquire a 30% stake in Nutrabolt, the maker of popular energy drinks like C4 Energy and Xtend Energy.
Instead of creating its own products in competitive markets, Keurig Dr. Pepper has chosen to work with established brands in specific categories. This approach sets the stage for possible future acquisitions and allows the company to benefit from the growth of these brands by providing them with increased distribution and market expertise.
The latest partnership involves an investment in La Colombe, a recognizable brand in the ready-to-drink coffee space. This move complements Keurig’s existing line of Keurig products while allowing La Colombe to expand its reach and pay off its debt. Keurig Dr Pepper will also incorporate La Colombe into its K-cups platform, enhancing the brand’s availability and recognition among consumers.
The financial backing and manufacturing and distribution connections of Keurig Dr Pepper will undoubtedly accelerate La Colombe’s growth and strengthen its competitive position against other established ready-to-drink coffee products in the market.
The distribution transition for La Colombe’s ready-to-drink coffee to Keurig Dr. Pepper is expected to begin in late 2023, with the launch of La Colombe branded K-Cup pods set for next year. The equity investment is subject to regulatory approval and is anticipated to be completed by the end of September.
