Keurig Dr Pepper Inc. (KDP) has purchased a 33 percent stake in La Colombe, and the two companies announced a strategic partnership to drive growth for La Colombe’s product lines, according to a release distributed by the companies.
The partnership includes a long-term sales and distribution agreement for La Colombe ready-to-drink coffee in KDP’s direct store distribution network in retail. In addition, the companies entered a long-term licensing, manufacturing and distribution agreement for La Colombe-branded K-Cup coffee pods through KDP’s networks in the U.S. and Canada.
KDP will invest $300 million for its 33 percent ownership stake in La Colombe — KDP will be the second-largest investor in La Colombe behind majority owner and chairman Hamdi Ulukaya, who is the founder of yogurt company Chobani. According to the release, La Colombe will use proceeds to accelerate growth and pay off debt.
The transition of La Colombe RTD coffee distribution to KDP will begin in late 2023, while the launch of La Colombe-branded coffee 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.
