07.21.23
Keurig Dr. Pepper Inc. (KDP) has entered into a sales and distribution partnership with La Colombe for its ready-to-drink coffee, and a long-term licensing, manufacturing, and distribution agreement for La Colombe-branded K-Cup coffee pods. KDP will also make an equity investment in La Colombe.
La Colombe is an independent coffee company which serves consumers in retail, branded cafes, foodservice, and direct-to-consumer. The brand is vertically-integrated, from sourcing, to roasting, and finally, to finished products.
KDP will sell and distribute shelf-stable La Colombe RTD coffee beverages in KDP’s direct store distribution network. KDP will manufacture, sell, and distribute La Colombe K-Cup coffee pods in the U.S. and Canada.
KDP will invest $300 million for 33% ownership of the company, making it the second-largest investor behind its majority owner and chairman Hamdi Ulukaya. The investment represents approximately triple the estimated 2024 consolidated net sales. La Colombe will 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 Bob Gamgort, KDP Chairman and CEO. "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 distribution to KDP will begin in late 2023, while the K-Cup launch will occur in 2024. The equity investment is expected to close by the end of the third quarter pending regulatory approval.
La Colombe is an independent coffee company which serves consumers in retail, branded cafes, foodservice, and direct-to-consumer. The brand is vertically-integrated, from sourcing, to roasting, and finally, to finished products.
KDP will sell and distribute shelf-stable La Colombe RTD coffee beverages in KDP’s direct store distribution network. KDP will manufacture, sell, and distribute La Colombe K-Cup coffee pods in the U.S. and Canada.
KDP will invest $300 million for 33% ownership of the company, making it the second-largest investor behind its majority owner and chairman Hamdi Ulukaya. The investment represents approximately triple the estimated 2024 consolidated net sales. La Colombe will 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 Bob Gamgort, KDP Chairman and CEO. "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 distribution to KDP will begin in late 2023, while the K-Cup launch will occur in 2024. The equity investment is expected to close by the end of the third quarter pending regulatory approval.
