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Keurig Dr Pepper (KDP) and La Colombe have announced a strategic partnership, including a long-term sales and distribution agreement for La Colombe RTD coffee. As part of the deal, KDP will make a $300 million equity investment in La Colombe in exchange for a 33% stake in the company, enabling KDP to participate in the value creation upside expected from the partnership. The deal also includes a long-term licensing, manufacturing and distribution agreement for La Colombe’s branded K-Cup coffee pods, in which KDP will manufacture and sell the pods, under a license agreement, in the US and Canada. La Colombe is an independent, premium coffee company serving consumers across multiple channels, including retail, cafes, foodservice and DTC. La Colombe says it is the “only vertically integrated RTD coffee company,” owning the entire coffee journey from “conscious bean sourcing and premium roasting” to the creation of product experiences. Under the agreement, KDP will sell and distribute shelf-stable La Colombe RTD coffee beverages within its direct store distribution network – expected to drive meaningful growth in the brand's availability across retail channels. KDP’s cash investment of $300 million makes it the second largest investor in the company, behind its majority owner and chairman, Hamdi Ulukaya. La Colombe says it will use the proceeds to accelerate growth and pay off debt. KDP chairman and CEO Bob Gamgort said: "We are excited to partner with Hamdi and the La Colombe team to drive value for both companies. This partnership will enable KDP to expand its reach into high growth RTD and super premium coffee segments and will meaningfully increase La Colombe's availability to consumers." La Colombe's majority owner Ulukaya added: "I'm extremely excited to join forces with Bob and his team at KDP to bring La Colombe to every corner of this amazing country . I joined the La Colombe journey eight years ago because I believe in its mission, quality, craftsmanship and social impact – and that everyone deserves quality, crafted, natural coffee. With this partnership we'll be closer to fulfilling the mission of providing exceptional coffee to all." KDP's investment in La Colombe represents approximately three times its estimated 2024 consolidated net sales. The transition of La Colombe RTD coffee distribution to KDP will begin in Q4 2023, while the launch of La Colombe branded K-Cup pods will occur during 2024. The equity investment, which is subject to regulatory approval, is expected to close by the end of the third quarter.