Industry Issues
KDP strengthens DSD operations with Kalil Bottling acquisition
Keurig Dr Pepper (KDP), Burlington, Mass., and Frisco, Texas, announced an agreement to acquire all production, sales and distribution assets of independent bottler Kalil Bottling Co. With the agreement, KDP’s company-owned direct-store-delivery (DSD) operations will gain new bottling and distribution rights in Arizona to key KDP brands including Canada Dry, 7UP, A&W, Snapple and Core Hydration, servicing 7.4 million consumers and approximately 4,500 retail outlets.
After the close of the transaction, KDP will operate a production facility in Tucson and sales and distribution centers in Tucson and Tempe. KDP expects to add approximately 425 employees in support of these new state-wide operations and will be working with Kalil to actively recruit from its existing talent base.
“This exciting acquisition strengthens our unique national DSD capabilities and creates opportunities for enhanced scale and brand building in a fast-growing region for beverages,” said Tim Cofer, CEO at KDP, in a statement. “Amplifying our route to market advantage is a key investment priority for KDP, and this strategic move will extend our system’s reach while providing us more direct insight into the local consumer base and stronger retail collaboration.”
Commenting on the announcement, John Kalil, president of Kalil Bottling Co. stated: “The Kalil family has been in Arizona since before statehood, and Kalil Bottling Co. has been around for 76 of those years. We thank Arizona for allowing us to serve you. We are transferring Kalil Bottling Co.’s business to Keurig Dr Pepper. When you pair the Kalil’s Family legacy with KDP’s national footprint, the future looks bright.”
Andrew Archambault, president of U.S. refreshment beverages at KDP, added: “Kalil has been an amazing independent bottling partner to KDP for decades, and we look forward to continuing Kalil’s commitment to service excellence for our Arizona customers and consumers. As we continue to optimize the best possible route to market throughout the U.S. for our portfolio of leading brands, we are thrilled about adding the first KDP-owned manufacturing, sales and distribution operation in the state.”
The acquisition is expected to close in the third quarter of 2024. Terms of the agreement have not been disclosed. BI
Hamdi Ulukaya acquires Anchor Brewing Co.
Shepherd Futures, the family office of Chobani CEO and founder, Hamdi Ulukaya, announced its acquisition of the assets of Anchor Brewing Co. for an undisclosed amount. The deal encompasses all assets of Anchor and marks a new beginning for the company, continuing its 128-year legacy.
“What an exciting time for San Francisco and Anchor Brewing,” Ulukaya said in a statement. “Both are experiencing the magic of rebirth. I have fallen in love with this city, its history, grit and charm. I believe brands born in places like this are incredibly special and must be treasured, respected and loved.
“San Francisco is at the heart of Anchor Brewing, and Anchor embodies so much of what makes this city great,” Ulukaya continued. “I am humbled and excited to be part of this city and its rich community of people, who have a spirit that is special and unique. I have learned so much about Anchor and its role in San Francisco’s journey, and I look forward to doing whatever I can to support this amazing story of revitalization.”
With a history dating back to the California Gold Rush in 1896, Anchor is best known for its Anchor Steam Beer and its renowned brewery and Public Taps taproom, Anchor’s operations in San Francisco’s Potrero Hill neighborhood closed last year.
Ulukaya intends to bring back the iconic brand that so many in San Francisco and around the world have loved for so long, the company says. BI
Brown-Forman Corp. mourns the loss of W.L. Lyons Brown Jr., retired chair of the board and chief executive officer, who passed away June 9. Brown, a fourth-generation Brown family member, was the great-grandson of the company’s founder, George Garvin Brown. “We are deeply saddened by the passing of our esteemed former leader Lee Brown. His visionary leadership and commitment to our international expansion and long-term growth helped shape Brown-Forman into the global company it is today. His legacy will long be remembered and celebrated,” said Brown-Forman CEO and President Lawson Whiting, in a statement. Brown began his career at Brown-Forman in 1960 as a sales representative in its international division. During more than three decades at the company, he led Brown-Forman through a period of diversification and was instrumental in launching the company’s export division. Brown steered the company from annual sales of $365 million to $1.7 billion.
Zentopia, the Eugene, Ore.-based producer of CBD-infused sparkling waters and caffeinated teas, has tapped Columbia Distributing to evolve and grow the brand. Columbia began selling Zentopia across Oregon and Washington on June 1. “Choosing our wholesale partners is as important as the ingredients we use in our products,” said Cassia Zeller, president at Zentopia, in a statement. “We’ve seen other brands at our current growth stage put their trust in the Columbia team and how those brands have flourished. This is a strategic partnership with a proven brand-builder. Our goal with Columbia is to evolve Zentopia as a lifestyle brand and to continue innovating and diversifying our product offerings.” Columbia’s president and CEO Chris Steffanci believes in the Zentopia brand and acknowledges its pole position in the burgeoning CBD beverage category. “We’re honored to be partnering with Zentopia at such a decisive point in its growth,” Steffanci said in a statement. “Expanding its footprint is so much more than reaching more store shelves – it’s growing the love for the Zentopia brand. That’s our business, it’s what we do best, and we’re excited to get to work.”
Southern Glazer’s Wine & Spirits, Miami and Dallas, announced that the company’s Chairman, Harvey Chaplin, passed away June 9. He was 95 years old. “It is with great sadness that I announce the passing of my beloved father, Harvey Chaplin, our Company’s Founder and Chairman, and one of the icons of our industry,” said Wayne E. Chaplin, CEO of Southern Glazer’s Wine & Spirits, in a statement. “His influence as a leader, a philanthropist, a loving family man, and Patriarch of our family has left an indelible mark on all who have known and worked with him. He was a larger-than-life figure and will be greatly missed by my family, and our entire Southern Glazer’s team.” Having paved the way for the modern three-tier system, Harvey Chaplin was at the forefront of what became an unprecedented expansion and consolidation of the second tier, the company notes. His vision for creating a national footprint to scale the value a wholesaler could deliver for suppliers and customers has driven the unparalleled growth of Southern Glazer’s Wine & Spirits, which now operates in 45 U.S. markets, as well as Canada.
Starbucks, Seattle, and Grubhub, Chicago, announced a partnership to bring Grubhub delivery to Starbucks customers in the U.S. Starbucks is the most searched merchant not yet available on Grubhub's Marketplace, and through this partnership, both brands will provide customers with the ultimate convenience of having their Starbucks orders delivered right to their door, the companies say. Having begun in June, Starbucks Delivery with Grubhub rolled out to select markets in Pennsylvania, Colorado and Illinois, with national availability anticipated in all 50 states across the United States by August 2024. “Customer demand to get Starbucks delivered continues to increase, as evidenced by double-digit growth in the U.S. delivery business this past quarter, indicating that our customers continue to want convenience in their everyday lives,” said Meg Mathes, vice president of digital experiences at Starbucks, in a statement. “Our new partnership with Grubhub will help fuel this growth by increasing availability of Starbucks products to Grubhub's tens of millions of customers, via a leading delivery provider.”