Keurig Inks Deal With Dr. Pepper For New Soda Maker

09-Jan-2015 - USA

Keurig Green Mountain, known for its coffee brewers and single-serve coffee pods, has signed a deal with Dr Pepper Snapple Group Inc. (DPS) to make single-serve capsules of carbonated Dr Pepper beverages for its upcoming home-beverage maker.

Keurig Cold, which is planned for a launch in the fall of 2015, is a new home beverage system with which consumers can make cold beverages at home, including carbonated drinks, juice and sports drinks.

"With Keurig Cold, we've leveraged Keurig innovation to make it possible for consumers to create great-tasting cold beverages at home with the one-touch simplicity of Keurig. We're very excited to offer a range of Dr Pepper Snapple's iconic brands in the system at launch," said Lori Tauber Marcus, Keurig's Chief Product Officer, Keurig Cold Systems.

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The companies did not specify the brands of Dr Pepper Snapple that will be available. Dr Pepper Snapple offers its flagship namesake brands along with 7UP, A&W, Canada Dry, Clamato, Crush, Hawaiian Punch, Mott's, Mr & Mrs T mixers, Peñafiel, Rose's, Schweppes, Squirt and Sunkist soda.

Financial terms of the Keurig-Dr Pepper deal were not disclosed. Dr Pepper Snapple is the second major company that has inked a deal with Keurig for the home beverage maker. Last year, Keurig had announced a similar deal with the cola giant Coca-Cola Co. (KO) for its brands to be part of Keurig Cold.

Soda companies would welcome this new home beverage maker from Keurig as they see opportunities to improve sluggish sales, with consumers switching to health drinks and fresh juices on health concerns.

DPS Executive Vice President of Marketing Jim Trebilcock said, "Our team is committed to building and enhancing our leading brands, and this agreement presents an opportunity to reach consumers in new occasions. We're looking forward to working with Keurig to bring our brands to this innovative new platform."

GMCR is currently trading at $133.77, up $6.58 or 5.17%, on the Nasdaq. DPS is currently trading at $72.27, up $0.79 or 1.11%, on the NYSE. (dpa)

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