MEXICO – Keurig Dr Pepper (KDP), a multinational producer, and distributor of hot and cold beverages has entered into a strategic deal with Red Bull, the iconic global energy brand, to sell and distribute Red Bull in Mexico, further leveraging and expanding KDP’s successful partner network strategy.
In the sales and distribution deal, in which financial terms of the deal were not disclosed, KDP has an exclusive right to distribute Red Bull Energy Drink products across independent retailers.
The retailers include grocery, convenience, pharmacy, and kiosks, as well as wholesale, regional key account, and on-premise channels in the country, with some exclusions.
The partnership also provides the company with the option to distribute future ready-to-drink (RTD) beverage products that Red Bull may launch in Mexico in these locations.
The owner of Keurig, Dr Pepper, Green Mountain Coffee Roasters, and Canada Dry brands expects to start the sales and distribution of Red Bull during the final quarter of 2022.
KDP CEO Ozan Dokmecioglu stated: “This new agreement furthers KDP’s commitment to partnerships, which are a core element of our growth strategy in which we create long-term, win-win relationships for both KDP and our strategic partners.
“The agreement demonstrates the strategic importance of energy to us and provides us the opportunity to partner with the energy brand. We look forward to working with Red Bull and believe this new partnership has the potential to expand over time.”
Gilberto Maldonado, KDP SVP & General Manager of Mexico commented that the addition of the Red Bull brand to KDP’s nationwide distribution network in Mexico strengthens its presence in the energy drink category and leverages the distribution capabilities to expand the availability of Red Bull in the country.
The Energy Drinks market in Mexico registered a positive compound annual growth rate (CAGR) of 19.83% during the period 2015 to 2020 with a sales value of MXN 14,412.15 Million (US$719.17m) in 2020, a decrease of -8.97% over 2019.
The market achieved its strongest performance in 2017 when it grew by 46.96% over its previous year and its weakest performance in 2020 when it fell by -8.97% over 2019.
Statistics from Statista show the leading energy drink in Mexico in 2017, by market share based on sales value was Red Bull which accounted for 35 percent of the energy drinks’ sales value in the country.
The Latin American market for energy drinks including Mexico was valued at US$6.88 billion in 2021 and is projected by Market Data Forecast to grow at a CAGR of 4.1% to reach US$8.41billion by 2026.
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