TUCSON, AZ (September 12, 2024) -- The American Bottling Company dba Keurig Dr Pepper (NASDAQ: KDP) announced earlier this year an agreement to acquire all production, sales, and distribution assets of independent bottler Kalil Bottling Co. (Kalil). The Tucson real estate transferred for $8.55 million ($52.83 PSF) for seven buildings totaling 161,835 square feet and 7.71 acres at 931 S Highland Ave. and 1201-1262 E 19th Street in Tucson.
With the agreement, KDP's Company-owned direct-store delivery (DSD) operations gain new bottling and distribution rights in Arizona to key KDP brands, including Canada Dry, 7UP, A&W, Snapple, and Core Hydration. These brands will service 7.4 million consumers and approximately 4,500 retail outlets.
Keurig Dr Pepper is a leading beverage company in North America. With a portfolio of more than 125 owned, licensed, and partnered brands and powerful distribution capabilities, it provides a beverage for every need, anytime, anywhere.
With the close of this transaction, KDP will operate the production facility in Tucson and sales and distribution centers in Tucson and Tempe. KDP expects to add approximately 425 employees to support these new state-wide operations and will work with Kalil to actively recruit from its existing talent base.
"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 Tim Cofer, Chief Executive Officer at KDP. "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."
Commenting on the announcement, John Kalil, President, Kalil Bottling Co. stated: "The Kalil family has been in Arizona since before statehood, and Kalil Bottling Co. has been around for seventy-six of those years. We thank Arizona for allowing us to serve you. We are transferring Kalil Bottling Co.'s business to Keurig Dr Pepper. When you pair the Kalil's Family legacy with KDP's national footprint, the future looks bright."
"Kalil has been an amazing independent bottling partner to KDP for decades, and we look forward to continuing Kalil's commitment to service excellence for our Arizona customers and consumers," said Andrew Archambault, President, U.S. Refreshment Beverages at KDP. "As we continue to optimize the best possible route to market throughout the U.S. for our portfolio of leading brands, we are thrilled about adding the first KDP-owned manufacturing, sales and distribution operation in the state."
The full terms of the agreement were not disclosed.
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