Keurig Dr Pepper announced an agreement to acquire all production, sales and distribution assets of independent bottler Kalil Bottling Co. (Kalil). With the agreement, KDP’s Company-owned direct-store-delivery (DSD) operations will gain new bottling and distribution rights in Arizona to key KDP brands including Canada Dry, 7UP, A&W, Snapple and Core Hydration, servicing 7.4 million consumers and approximately 4,500 retail outlets.
After the close of the transaction, KDP will operate a production facility in Tucson and sales and distribution centers in Tucson and Tempe. KDP expects to add approximately 425 employees in support of these new state-wide operations and will be working with Kalil to actively recruit from its existing talent base.
“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,” Tim Cofer, chief executive officer at KDP, said in the announcement. “Amplifying our route to market advantage is a key investment priority for KDP, and this strategic move will extend our system’s reach while providing us more direct insight into the local consumer base and stronger retail collaboration.”
John Kalil, president, Kalil Bottling Co., said in the announcement: “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.”
Andrew Archambault, president, U.S. Refreshment Beverages at KDP, added in the announcement: “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. As we continue to optimize the best possible route to market throughout the U.S. for our portfolio of leading brands, we are thrilled about adding the first KDP-owned manufacturing, sales and distribution operation in the state.”
The acquisition is expected to close in the third quarter of 2024. Terms of the agreement have not been disclosed.
