Coca-Cola Buys Distribution Rights of Dr Pepper Snapple Group

Coca-Cola has bought the rights to distribute the products of its rival Dr Pepper Snapple Group (DPS) for $715m.

According to the agreement, DPS will license Dr Pepper and Canada Dry in certain US markets following Coca-Cola’s acquisition of Coca-Cola Enterprises’ (CCE) North American bottling business.

Coca-Cola acquired Coca-Cola Enterprises which, despite the name, is a separate company and was the distributor of Dr Pepper Snapple Group brands.

Coca-Cola will distribute Dr Pepper in the US and Canada Dry in the north-east where they were being distributed by CCE.

The agreement also allows DPS to sell Squirt, Canada Dry, Schweppes and Cactus Cooler in certain US territories.

The transaction is subject to Coca-Cola meeting performance conditions and will last for an initial 20-year term, with a 20-year renewal period.

Coca-Cola will continue to distribute Canada Dry, C’Plus and Schweppes in Canada.