By Paul Ziobro


Keurig Dr Pepper is buying certain assets of independent bottler Kalil Bottling for an undisclosed amount, boosting its company-owned direct-store-delivery operations in Arizona.

The deal, which is expected to close in the third quarter, includes all production, sales and distribution assets of Kalil.

Keurig Dr Pepper will gain new bottling and distribution rights in Arizona for brands such as Canada Dry, 7UP, A&W, Snapple and Core Hydration, serving about 4,500 retail outlets.

After the deal closes, Keurig Dr Pepper will operate a production facility in Tuscon, Ariz., and distribution centers in Tuscon and Tempe, Ariz. It will add about 425 employees to support the operations.

Keurig Dr Pepper Chief Executive Tim Cofer said the acquisition strengthens its national direct-store-delivery capabilities in a fast-growing region for beverages and will also give the company more direct insight into the local consumer base and tighter collaboration with retailers.


Write to Paul Ziobro at paul.ziobro@wsj.com


(END) Dow Jones Newswires

05-31-24 1628ET