The great coffee consolidation continues, and today’s news comes via La Colombe Coffee Roasters. The Philadelphia-based coffee company announced a “strategic partnership” with Keurig Dr. Pepper. In plain speak, KDP bought a minority stake in the company for $300 million.
Per the press release, KDP gains a “long-term sales and distribution agreement for La Colombe ready-to-drink coffee and a long-term licensing, manufacturing and distribution agreement for La Colombe branded K-Cup® coffee pods.” The agreement comes with a “cash investment” from KDP—the previously mentioned nine-figure sum—that gives them 33% ownership in the company. This gives them the second largest stake in La Colombe behind majority shareholder and chariman Hamdi Ulukaya of Chobani fame. La Colombe now joins coffee brands Green Mountain, Tully’s, Barista Prima, McCafe, and Revv under the KDP umbrella.
“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,” said Ulukaya. “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.”
Subject to regulatory approval, the $300 million sale is expected to be complete by the end of Q3 2023, with KDP to take over the distribution later in the same year. La Colombe branded K-Cup® pods are expected to be released the following year in 2024.
For more information, read the La Colombe Coffee Roasters and Keurig Dr. Pepper press release.