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Analysis: Keurig Dr Pepper's Expansion Play

KDP to Acquire Kalil Bottling. Move Follows Effort to Take Back Reyes' Dr Pepper Territory in California
June 6, 2024

Keurig Dr Pepper has agreed to acquire Tucson, Arizona-based Kalil Bottling as KDP continues to bolster its company-owned direct-store-delivery (DSD) operation in the western US. The announcement Friday came weeks after KDP disclosed in a Texas lawsuit that it will not renew a franchise agreement with Reyes Coca-Cola Bottling to distribute Dr Pepper products in California, effective Oct. 27, 2025. Reyes, citing California franchise laws, has asked a California judge to force a renewal unless KDP can show cause for ending the franchise arrangement. That has sent some Dr Pepper bottlers into their contracts to assess termination risk. KDP’s aggressive new stance with Reyes Coca-Cola Bottling has raised industry questions about whether more such moves are planned by KDP as part of a strategy to take back Dr Pepper territory from Coke and Pepsi bottlers. Or, is the Reyes non-renewal simply a special and opportunistic circumstance driven by geography and existing synergies?


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2023 All-Channel Results: LRB Dollars Rose. Volume Fell. Dr Pepper Edges Out Pepsi-Cola as No. 2 CSD Brand

Most Top-10 LRB Trademarks Posted Dollar Growth, Volume Decline
May 23, 2024

Liquid refreshment beverage sales across all US measured and unmeasured channels in 2023 grew +7.9% by...tables included:

Table 1: U.S. LRB Category Volume and Dollar Performance FY2023

Table 2: Top U.S.Carbonated Soft Drink (CSD) Brands* FY2023

Table 3: Top U.S. Liquid Refreshment Beverages (LRB) Trademarks* FY2023


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Bottler Deep Dive: Coca-Cola Beverages Florida Goes Big on Automation, Efficiency

Meanwhile, CEO Troy Taylor Sees Possible New Horizon in Alcohol
May 8, 2024

Bottler Embraces Role as Tester of Product and Packaging Innovation

Plus: Parcel Delivery Effort Seeks Profitability Down to Six-Pack

Coca-Cola Beverages Florida has come a long way since Troy Taylor leveraged his relationships and expertise as an advisor to Coca-Cola to win franchise bottling territory under Coca-Cola’s massive refranchising effort a decade ago. What started as central Florida territory anchored by Tampa/St. Petersburg has expanded to the entire...


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Executive Q&A: Keurig Dr Pepper CEO Tim Cofer, Executive Chairman Bob Gamgort

Company Has ‘One Leader,” Gamgort Says of Leadership Transition to Cofer
May 8, 2024

Among Priorities, Cofer Looks to Add Scale to Owned DSD Network.

Gamgort Offers View of Dr Pepper Territories Handled by Coke and Pepsi.

In RTD Coffee, Execs See Chance to ‘Carve Out a Space.’

Full Ownership Not Requirement in Partnership Deals.

Distribution of Athletic Possible?

Plus: Dr Pepper Reaches Milestone in 2023.

Keurig Dr Pepper has a new leader. The company’s board promoted COO Tim Cofer to CEO on April 26 as planned and appointed him to the board. He succeeds...


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Major BevCos Report ‘Resilient’ Demand in 2024

Executives Responding to Weakness Among Lower-Income Consumers
May 8, 2024

Coca-Cola Writes Down Value of BodyArmor as Fairlife Soars.

PepsiCo: Away-From-Home Outpaced At-Home Sales in First-Quarter.

Monster’s Sacks May Leave CEO Post in 2025. U.S. Price Hike Announced.

Consumer resilience was the theme from Coca-Cola, PepsiCo, and Keurig Dr Pepper executives for the US market during their first-quarter earnings reports. That’s despite two years of persistent grocery...


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Branded Bottled Water Leader BlueTriton Pursues Premium Strategy, CEO Says

Growth Priorities Include Aluminum Bottles, Saratoga, Expanded 5-Gallon Reach
April 17, 2024

Bottled water producer BlueTriton is rolling out a new premium aluminum bottle for its Pure Life and regional spring water brands, including Poland Spring, Arrowhead, and Deer Park. The package is among a host of growth priorities for the company, said CEO Joey Bergstein in an interview. BlueTriton was formed about...


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Protein Shakes: Broadened RTD Category Posted 2023 Growth

Fairlife Core Power Jumped +72%. Signs Olympian Endorser
April 17, 2024

US retail dollar sales for protein shakes jumped +17% last year, helped by growth from Coca-Cola’s Fairlife Core Power and PepsiCo’s Muscle Milk, according to BD data. As shown in the Green Sheet with this story, the category also grew by volume. The category, traditionally...


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Circana Details Non-Alcohol Share Gains in U.S. as Beer, Spirits Segments Slide

Crossover Products Exceed $600 Million in 2023
April 17, 2024

A recent report from market research firm Circana shows key non-alcoholic beverage categories including carbonated soft drinks and water have gained dollar share of overall packaged beverage sales in the U.S. Alcohol categories such as beer and spirits have lost share. In 2023, carbonated soft drinks reached a 17.2 share of the U.S. retail market, up from...


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Stock Watch: Most Beverage Stocks Underperformed Market in Q1. Celsius on Fire

Retailer Stocks Outperformed. Walgreens Slide Continued
April 4, 2024
Coca-Cola and PepsiCo posted stock price gains during the first quarter of this year, which was a reversal from declines posted in 2023. The increases came as the companies largely staved off concerns that declining pricing power and inflation-pressured consumer demand would erode...
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Private Label Bottled Water Gained Share in 2023

Smartwater, Lifewtr Grew. Dasani, Aquafina Declined
April 4, 2024

Private label offerings gained value and volume share in the plain bottled water segment at US retail last year, according to Beverage Digest full-year data. As shown in the Green Sheet with this story, private label added +3.5 volume share points to reach a 58 market share. On a dollar basis, private label added +1.9 share points to reach just beyond...


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