USA – Keurig Dr Pepper (KDP) has announced the acquisition of Arizona-based bottling and distribution company Kalil Bottling Co., marking a significant expansion of its direct-store-delivery (DSD) operations into the state.
Kalil Bottling Co., established in 1948, has been a longstanding partner of KDP, bottling drinks for the company.
This acquisition will add a production facility in Tucson, along with sales and distribution centers in Tucson and Tempe, to KDP’s assets. Upon finalizing the deal, KDP will integrate approximately 425 Kalil Bottling Co. employees into its workforce.
The deal grants KDP bottling and distribution rights in Arizona for popular brands, including Canada Dry, 7Up, A&W, Snapple, and Core Hydration. Kalil Bottling Co. currently serves around 4,500 retail outlets across Arizona, reaching an estimated 7.4 million consumers.
With this acquisition, KDP will operate its first manufacturing, sales, and distribution operations in Arizona. Previously, KDP relied on independent bottlers and distributors, including Kalil Bottling Co., to manage its operations in the state.
“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,” said KDP CEO Tim Cofer.
“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.”
KDP opens new office in Brazil
In addition to expanding its operations in Arizona, KDP and its Switzerland-based coffee trading arm, Keurig Trading, have opened a new office in Brazil. This office will focus on green coffee sourcing, logistics, and quality control.
According to KDP, the Brazil office is designed to be a “center of excellence for buying, logistics, risk management and quality within Keurig Dr Pepper’s coffee supply chain.”
In 2023, KDP reported net sales of US$14 billion, a 10.8% increase year-on-year. However, net income dropped by 33.1 percent to US$1.4 billion. The US coffee segment, specifically, generated net sales of US$4.3 billion, up 5.2 percent from the previous year, but income from operations for this segment fell by 7 percent to US$1.2 billion.
In April, after experiencing a 2.1 percent decline in first-quarter sales from its US coffee business in 2024, KDP emphasized the “value” of its products in an effort to counteract declining sales. Overall, the company posted first-quarter net sales of US$3.47 billion, a 3.4 percent increase year-on-year, with a net income of US$454 million, down from US$467 million.
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