Keurig Dr Pepper (KDP) is making a $300 million equity investment in La Colombe in return for a 33% ownership stake in the company. Included in the deal is the creation of a strategic partnership that includes a long-term sales and distribution agreement, under which KDP will sell and distribute shelf-stable La Colombe RTD coffee beverages in KDP’s direct store distribution network, in addition to a long-term licensing, manufacturing, and distribution agreement in the U.S. and Canada for La Colombe branded K-Cup coffee pods.
The transition of La Colombe ready-to-drink coffee distribution to KDP will begin later this year, while the launch of La Colombe-branded K-Cup pods will start next year. Subject to regulatory approval, the equity investment is expected to close by the end of the third quarter.
