The Coca-Cola Co. will pay $715M to distribute iconic Dr Pepper Snapple Group brands including the core CSD and juice and tea lines for which the company is famous.
The agreement, announced Monday morning during DPSG's investor meeting, is one that keeps Coke in the game when it comes to distributing Dr Pepper, one of the few CSDs to show sales growth in the category. Additionally, it allows the fast-reviving Snapple line to be serviced by Coke's recently re-absorbed CCE distribution group.
DPSG brands are largely distributed through its two rivals, Coke and Pepsi; the one-time cash payments are part of a termination agreement that was triggered when the two companies purchased their distribution subsidiaries this year.
Part of DPSG's 20-year deal with Coke includes a $125 million discount to allow its products to be part of Coke's evolving "Freestyle" fountain technology.