Tractor Beverage Company has reached an agreement with Keurig Dr Pepper (KDP) to enter a long-term exclusive partnership for the foodservice channel. KDP will also serve as the lead investor in a $60 million funding round to support expansion of infrastructure and marketing efforts and to grow the brand’s awareness among younger consumers.
The strategic partnership “combines the national and regional foodservice sales strength and reach of Keurig Dr Pepper with Tractor’s product, production and marketing capabilities” to make organic beverages more accessible, according to a press release.
“We are thrilled to announce this investment from Keurig Dr Pepper to accelerate the realization of Tractor’s mission to be the foodservice industry’s “better-for-you” beverage solution,” said Kevin Sherman, Tractor Beverage CEO. “We believe this partnership will enable us to solidify our product leadership while leveraging the strength of Keurig Dr Pepper’s powerful distribution system to scale our influence in the foodservice industry.”
Tractor has evolved since it was founded as a soda brand in 2014 by organic farmer Travis Potter. In 2018, one year after bringing on former Coca-Cola Company chief sales officer Luke Emery as CEO, the brand launched at restaurant trade shows with a broad, multi-category portfolio of organic, non-GMO beverage products. As of 2020, Tractor is available in nationwide eateries such as Chipotle, B.GOOD, Umami Burger, Curry Up Now, Garbanzo Mediterranean Fresh, and Pokeworks.
Commenting on the partnership, Derek Hopkins, President, Cold Beverages, at Keurig Dr Pepper, shared, “Consumers continue to seek new beverage options and experiences when they are enjoying their meals. We have built strong brands and relationships in the restaurant space, and this strategic partnership with Tractor Beverage complements our beverage portfolio and supports our commitment to deliver innovation and develop growth strategies with our customers. We’re excited to work with the entire Tractor team to provide customers with flexible innovation that delivers great-tasting, clean-label beverages.”
KDP reported a 9.5% increase in net beverage concentrate sales to $359 million during Q1 2022, reflecting higher net price realization of 7.6%. Volume/mix was up 1.9%, driven by higher fountain foodservice shipments.