Keurig Dr Pepper (KDP) has agreed a deal to acquire US-based premium water company Core Nutrition for $525 million.
Core produces a range of beverages such as Core Hydration, a premium, nutrient-enhanced bottled water, and Core Organic, a USDA-certified organic enhanced fruit drink, both of which are currently distributed by KDP.
Prior to this acquisition, Core operated as one of KDP’s ‘allied brands’, and has been a KDP allied brand since 2016. KDP currently manages approximately two-thirds of the brand’s US distribution.
KDP estimates that the transaction will close by the end of 2018, and both Core Hydration and Core Organic will continue to be distributed primarily through KDP’s direct store delivery network once the transaction has been finalised.
Keurig Dr Pepper CEO Bob Gamgort said: “Core has been a valued and successful allied brand partner, and we are pleased that this on-trend beverage will become part of our owned KDP family of brands.
“Our sales and distribution capabilities have helped fuel significant growth for the Core portfolio. Through this transaction we intend to realise the full growth potential for the business.”
Lance Collins, founder of Core added: “We created Core to meet the increasing desires for innovative, enhanced water offerings with functional benefits for today’s modern consumer.
“KDP has been an outstanding partner for Core and I am certain that, under its ownership, Core will continue to see tremendous long-term success.
“I am a strong supporter of the KDP strategy and business model and am looking forward to being a shareholder in the company.”
© FoodBev Media Ltd 2019